Correlation Between BYD Co and Bank of Jiangsu
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By analyzing existing cross correlation between BYD Co Ltd and Bank of Jiangsu, you can compare the effects of market volatilities on BYD Co and Bank of Jiangsu 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 Bank of Jiangsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Bank of Jiangsu.
Diversification Opportunities for BYD Co and Bank of Jiangsu
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BYD and Bank is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Bank of Jiangsu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Jiangsu 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 Bank of Jiangsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Jiangsu has no effect on the direction of BYD Co i.e., BYD Co and Bank of Jiangsu go up and down completely randomly.
Pair Corralation between BYD Co and Bank of Jiangsu
Assuming the 90 days trading horizon BYD Co Ltd is expected to under-perform the Bank of Jiangsu. In addition to that, BYD Co is 1.41 times more volatile than Bank of Jiangsu. It trades about -0.18 of its total potential returns per unit of risk. Bank of Jiangsu is currently generating about 0.02 per unit of volatility. If you would invest 884.00 in Bank of Jiangsu on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Bank of Jiangsu or generate 0.45% 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. Bank of Jiangsu
Performance |
| Timeline |
| BYD Co |
| Bank of Jiangsu |
BYD Co and Bank of Jiangsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Bank of Jiangsu
The main advantage of trading using opposite BYD Co and Bank of Jiangsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Bank of Jiangsu 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 Bank of Jiangsu will offset losses from the drop in Bank of Jiangsu's long position.| BYD Co vs. Changchun Faway Automobile | BYD Co vs. Songz Automobile Air | BYD Co vs. Tongyu Communication | BYD Co vs. Hubei Yingtong Telecommunication |
| Bank of Jiangsu vs. North Huajin Chemical | Bank of Jiangsu vs. Jiajia Food Group | Bank of Jiangsu vs. Milkyway Chemical Supply | Bank of Jiangsu vs. Nantong Jiangshan Agrochemical |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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