Correlation Between BYD Co and Super Dragon
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By analyzing existing cross correlation between BYD Co Ltd and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on BYD Co and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Super Dragon.
Diversification Opportunities for BYD Co and Super Dragon
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between BYD and Super is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of BYD Co i.e., BYD Co and Super Dragon go up and down completely randomly.
Pair Corralation between BYD Co and Super Dragon
Assuming the 90 days trading horizon BYD Co Ltd is expected to under-perform the Super Dragon. But the stock apears to be less risky and, when comparing its historical volatility, BYD Co Ltd is 1.77 times less risky than Super Dragon. The stock trades about -0.08 of its potential returns per unit of risk. The Super Dragon Engineering Plastics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,576 in Super Dragon Engineering Plastics on October 26, 2024 and sell it today you would lose (121.00) from holding Super Dragon Engineering Plastics or give up 3.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Super Dragon Engineering Plast
Performance |
| Timeline |
| BYD Co |
| Super Dragon Enginee |
BYD Co and Super Dragon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Super Dragon
The main advantage of trading using opposite BYD Co and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.| BYD Co vs. Huaxia Fund Management | BYD Co vs. Sinomach Automobile Co | BYD Co vs. Guangzhou Restaurants Group | BYD Co vs. Jiangsu Xinri E Vehicle |
| Super Dragon vs. Industrial and Commercial | Super Dragon vs. China Construction Bank | Super Dragon vs. Bank of China | Super Dragon vs. Agricultural Bank of |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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