Correlation Between BYD Co and Heilongjiang Agriculture
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By analyzing existing cross correlation between BYD Co Ltd and Heilongjiang Agriculture Co, you can compare the effects of market volatilities on BYD Co and Heilongjiang Agriculture 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 Heilongjiang Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Heilongjiang Agriculture.
Diversification Opportunities for BYD Co and Heilongjiang Agriculture
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and Heilongjiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Heilongjiang Agriculture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Agriculture 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 Heilongjiang Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Agriculture has no effect on the direction of BYD Co i.e., BYD Co and Heilongjiang Agriculture go up and down completely randomly.
Pair Corralation between BYD Co and Heilongjiang Agriculture
Assuming the 90 days trading horizon BYD Co Ltd is expected to under-perform the Heilongjiang Agriculture. But the stock apears to be less risky and, when comparing its historical volatility, BYD Co Ltd is 1.05 times less risky than Heilongjiang Agriculture. The stock trades about -0.08 of its potential returns per unit of risk. The Heilongjiang Agriculture Co is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,431 in Heilongjiang Agriculture Co on October 26, 2024 and sell it today you would lose (44.00) from holding Heilongjiang Agriculture Co or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Heilongjiang Agriculture Co
Performance |
| Timeline |
| BYD Co |
| Heilongjiang Agriculture |
BYD Co and Heilongjiang Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Heilongjiang Agriculture
The main advantage of trading using opposite BYD Co and Heilongjiang Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Heilongjiang Agriculture 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 Heilongjiang Agriculture will offset losses from the drop in Heilongjiang Agriculture's long position.| BYD Co vs. Huaxia Fund Management | BYD Co vs. Sinomach Automobile Co | BYD Co vs. Guangzhou Restaurants Group | BYD Co vs. Jiangsu Xinri E Vehicle |
| Heilongjiang Agriculture vs. Industrial and Commercial | Heilongjiang Agriculture vs. Kweichow Moutai Co | Heilongjiang Agriculture vs. Agricultural Bank of | Heilongjiang Agriculture vs. China Mobile Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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