Correlation Between BYD Co and Shengyi Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between BYD Co Ltd and Shengyi Technology Co, you can compare the effects of market volatilities on BYD Co and Shengyi Technology 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 Shengyi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Shengyi Technology.
Diversification Opportunities for BYD Co and Shengyi Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and Shengyi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Shengyi Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengyi Technology 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 Shengyi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengyi Technology has no effect on the direction of BYD Co i.e., BYD Co and Shengyi Technology go up and down completely randomly.
Pair Corralation between BYD Co and Shengyi Technology
Assuming the 90 days trading horizon BYD Co is expected to generate 1.61 times less return on investment than Shengyi Technology. But when comparing it to its historical volatility, BYD Co Ltd is 1.13 times less risky than Shengyi Technology. It trades about 0.08 of its potential returns per unit of risk. Shengyi Technology Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,762 in Shengyi Technology Co on September 3, 2024 and sell it today you would earn a total of 344.00 from holding Shengyi Technology Co or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Shengyi Technology Co
Performance |
| Timeline |
| BYD Co |
| Shengyi Technology |
BYD Co and Shengyi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Shengyi Technology
The main advantage of trading using opposite BYD Co and Shengyi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Shengyi Technology 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 Shengyi Technology will offset losses from the drop in Shengyi Technology's long position.| BYD Co vs. Bus Online Co | BYD Co vs. Zhangjiagang Freetrade Science | BYD Co vs. Vontron Technology Co | BYD Co vs. Tianshui Huatian Technology |
| Shengyi Technology vs. Easyhome New Retail | Shengyi Technology vs. Yingde Greatchem Chemicals | Shengyi Technology vs. Ningxia Younglight Chemicals | Shengyi Technology vs. Beijing Jiaman Dress |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| 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 | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |