Correlation Between BYD Co and YiDong Electronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between BYD Co Ltd and YiDong Electronics Technology, you can compare the effects of market volatilities on BYD Co and YiDong Electronics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BYD Co with a short position of YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and YiDong Electronics.
Diversification Opportunities for BYD Co and YiDong Electronics
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BYD and YiDong is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics and BYD Co is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BYD Co Ltd are associated (or correlated) with YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of BYD Co i.e., BYD Co and YiDong Electronics go up and down completely randomly.
Pair Corralation between BYD Co and YiDong Electronics
Assuming the 90 days trading horizon BYD Co is expected to generate 1.48 times less return on investment than YiDong Electronics. But when comparing it to its historical volatility, BYD Co Ltd is 4.15 times less risky than YiDong Electronics. It trades about 0.06 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,165 in YiDong Electronics Technology on November 4, 2024 and sell it today you would lose (20.00) from holding YiDong Electronics Technology or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. YiDong Electronics Technology
Performance |
| Timeline |
| BYD Co |
| YiDong Electronics |
BYD Co and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and YiDong Electronics
The main advantage of trading using opposite BYD Co and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, YiDong Electronics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| BYD Co vs. Maccura Biotechnology Co | BYD Co vs. Jiangsu GDK Biotechnology | BYD Co vs. Chongqing Brewery Co | BYD Co vs. Shenzhen Bioeasy Biotechnology |
| YiDong Electronics vs. HeNan Splendor Science | YiDong Electronics vs. CIMC Vehicles Co | YiDong Electronics vs. Changchun Engley Automobile | YiDong Electronics vs. Shenzhen AV Display Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |