Correlation Between BYD Co and Jiangsu Financial
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By analyzing existing cross correlation between BYD Co Ltd and Jiangsu Financial Leasing, you can compare the effects of market volatilities on BYD Co and Jiangsu Financial 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Jiangsu Financial.
Diversification Opportunities for BYD Co and Jiangsu Financial
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BYD and Jiangsu is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of BYD Co i.e., BYD Co and Jiangsu Financial go up and down completely randomly.
Pair Corralation between BYD Co and Jiangsu Financial
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 1.25 times more return on investment than Jiangsu Financial. However, BYD Co is 1.25 times more volatile than Jiangsu Financial Leasing. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.04 per unit of risk. If you would invest 24,518 in BYD Co Ltd on November 27, 2024 and sell it today you would earn a total of 13,110 from holding BYD Co Ltd or generate 53.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| BYD Co |
| Jiangsu Financial Leasing |
BYD Co and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Jiangsu Financial
The main advantage of trading using opposite BYD Co and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Jiangsu Financial 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 Financial will offset losses from the drop in Jiangsu Financial's long position.| BYD Co vs. Henan Shuanghui Investment | BYD Co vs. Tianshan Aluminum Group | BYD Co vs. Harson Trading China | BYD Co vs. Zhongrun Resources Investment |
| Jiangsu Financial vs. Kuang Chi Technologies | Jiangsu Financial vs. Dhc Software Co | Jiangsu Financial vs. Elec Tech International Co | Jiangsu Financial vs. Guangzhou KingTeller Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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