Correlation Between BYD Co and Jiangsu Yueda
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By analyzing existing cross correlation between BYD Co Ltd and Jiangsu Yueda Investment, you can compare the effects of market volatilities on BYD Co and Jiangsu Yueda 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 Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Jiangsu Yueda.
Diversification Opportunities for BYD Co and Jiangsu Yueda
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BYD and Jiangsu is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of BYD Co i.e., BYD Co and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between BYD Co and Jiangsu Yueda
Assuming the 90 days trading horizon BYD Co is expected to generate 1.28 times less return on investment than Jiangsu Yueda. In addition to that, BYD Co is 1.17 times more volatile than Jiangsu Yueda Investment. It trades about 0.06 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.09 per unit of volatility. If you would invest 420.00 in Jiangsu Yueda Investment on November 4, 2024 and sell it today you would earn a total of 8.00 from holding Jiangsu Yueda Investment or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| BYD Co |
| Jiangsu Yueda Investment |
BYD Co and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Jiangsu Yueda
The main advantage of trading using opposite BYD Co and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| BYD Co vs. Maccura Biotechnology Co | BYD Co vs. Jiangsu GDK Biotechnology | BYD Co vs. Chongqing Brewery Co | BYD Co vs. Shenzhen Bioeasy Biotechnology |
| Jiangsu Yueda vs. Dingli Communications Corp | Jiangsu Yueda vs. Tongyu Communication | Jiangsu Yueda vs. China Satellite Communications | Jiangsu Yueda vs. Beijing Baolande Software |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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