Correlation Between BYD Co and Chengdu B
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By analyzing existing cross correlation between BYD Co Ltd and Chengdu B ray Media, you can compare the effects of market volatilities on BYD Co and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Chengdu B.
Diversification Opportunities for BYD Co and Chengdu B
Very poor diversification
The 3 months correlation between BYD and Chengdu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of BYD Co i.e., BYD Co and Chengdu B go up and down completely randomly.
Pair Corralation between BYD Co and Chengdu B
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.72 times more return on investment than Chengdu B. However, BYD Co Ltd is 1.39 times less risky than Chengdu B. It trades about 0.08 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about -0.01 per unit of risk. If you would invest 19,703 in BYD Co Ltd on September 2, 2024 and sell it today you would earn a total of 7,780 from holding BYD Co Ltd or generate 39.49% 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. Chengdu B ray Media
Performance |
| Timeline |
| BYD Co |
| Chengdu B ray |
BYD Co and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Chengdu B
The main advantage of trading using opposite BYD Co and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B'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 |
| Chengdu B vs. Kunshan Guoli Electronic | Chengdu B vs. Chison Medical Technologies | Chengdu B vs. Xian International Medical | Chengdu B vs. Shenzhen Glory Medical |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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