Correlation Between BYD Co and Jiangsu Zhongtian
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By analyzing existing cross correlation between BYD Co Ltd and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on BYD Co and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Jiangsu Zhongtian.
Diversification Opportunities for BYD Co and Jiangsu Zhongtian
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and Jiangsu is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of BYD Co i.e., BYD Co and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between BYD Co and Jiangsu Zhongtian
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.85 times more return on investment than Jiangsu Zhongtian. However, BYD Co Ltd is 1.17 times less risky than Jiangsu Zhongtian. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about 0.01 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 | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
BYD Co Ltd vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| BYD Co |
| Jiangsu Zhongtian |
BYD Co and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Jiangsu Zhongtian
The main advantage of trading using opposite BYD Co and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian'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 |
| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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