Correlation Between BYD Co and China Minsheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between BYD Co Ltd and China Minsheng Banking, you can compare the effects of market volatilities on BYD Co and China Minsheng 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 China Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and China Minsheng.
Diversification Opportunities for BYD Co and China Minsheng
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BYD and China is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking 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 China Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of BYD Co i.e., BYD Co and China Minsheng go up and down completely randomly.
Pair Corralation between BYD Co and China Minsheng
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 1.58 times more return on investment than China Minsheng. However, BYD Co is 1.58 times more volatile than China Minsheng Banking. It trades about 0.04 of its potential returns per unit of risk. China Minsheng Banking is currently generating about 0.04 per unit of risk. If you would invest 23,508 in BYD Co Ltd on September 26, 2024 and sell it today you would earn a total of 5,334 from holding BYD Co Ltd or generate 22.69% 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. China Minsheng Banking
Performance |
| Timeline |
| BYD Co |
| China Minsheng Banking |
BYD Co and China Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and China Minsheng
The main advantage of trading using opposite BYD Co and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, China Minsheng 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 China Minsheng will offset losses from the drop in China Minsheng's long position.| BYD Co vs. Shanghai Rongtai Health | BYD Co vs. Xiamen Jihong Package | BYD Co vs. Dezhan HealthCare Co | BYD Co vs. Great Sun Foods Co |
| China Minsheng vs. Kweichow Moutai Co | China Minsheng vs. Contemporary Amperex Technology | China Minsheng vs. G bits Network Technology | China Minsheng vs. BYD Co Ltd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |