Correlation Between BYD Co and Qingdao Citymedia
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By analyzing existing cross correlation between BYD Co Ltd and Qingdao Citymedia Co, you can compare the effects of market volatilities on BYD Co and Qingdao Citymedia 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 Qingdao Citymedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Qingdao Citymedia.
Diversification Opportunities for BYD Co and Qingdao Citymedia
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BYD and Qingdao is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Qingdao Citymedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Citymedia 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 Qingdao Citymedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Citymedia has no effect on the direction of BYD Co i.e., BYD Co and Qingdao Citymedia go up and down completely randomly.
Pair Corralation between BYD Co and Qingdao Citymedia
Assuming the 90 days trading horizon BYD Co Ltd is expected to under-perform the Qingdao Citymedia. But the stock apears to be less risky and, when comparing its historical volatility, BYD Co Ltd is 1.19 times less risky than Qingdao Citymedia. The stock trades about -0.14 of its potential returns per unit of risk. The Qingdao Citymedia Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Qingdao Citymedia Co on September 2, 2024 and sell it today you would earn a total of 92.00 from holding Qingdao Citymedia Co or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Qingdao Citymedia Co
Performance |
| Timeline |
| BYD Co |
| Qingdao Citymedia |
BYD Co and Qingdao Citymedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Qingdao Citymedia
The main advantage of trading using opposite BYD Co and Qingdao Citymedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Qingdao Citymedia 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 Qingdao Citymedia will offset losses from the drop in Qingdao Citymedia's long position.| BYD Co vs. Biwin Storage Technology | BYD Co vs. PetroChina Co Ltd | BYD Co vs. Industrial and Commercial | BYD Co vs. China Construction Bank |
| Qingdao Citymedia vs. Ye Chiu Metal | Qingdao Citymedia vs. State Grid InformationCommunication | Qingdao Citymedia vs. Jilin Jlu Communication | Qingdao Citymedia vs. Guangdong Advertising 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.
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