Correlation Between BYD Co and Yili Chuanning
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By analyzing existing cross correlation between BYD Co Ltd and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on BYD Co and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Yili Chuanning.
Diversification Opportunities for BYD Co and Yili Chuanning
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BYD and Yili is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of BYD Co i.e., BYD Co and Yili Chuanning go up and down completely randomly.
Pair Corralation between BYD Co and Yili Chuanning
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.62 times more return on investment than Yili Chuanning. However, BYD Co Ltd is 1.62 times less risky than Yili Chuanning. It trades about 0.13 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.06 per unit of risk. If you would invest 19,633 in BYD Co Ltd on December 4, 2024 and sell it today you would earn a total of 16,388 from holding BYD Co Ltd or generate 83.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| BYD Co |
| Yili Chuanning Biote |
BYD Co and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Yili Chuanning
The main advantage of trading using opposite BYD Co and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| BYD Co vs. Chongqing Brewery Co | BYD Co vs. Jilin Chemical Fibre | BYD Co vs. Hengli Petrochemical Co | BYD Co vs. Tsingtao Brewery Co |
| Yili Chuanning vs. Guosheng Financial Holding | Yili Chuanning vs. Jiugui Liquor Co | Yili Chuanning vs. Bank of Suzhou | Yili Chuanning vs. Dymatic Chemicals |
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 Stocks Directory module to find actively traded stocks across global markets.
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