Correlation Between BYD Co and Bank of XiAn
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By analyzing existing cross correlation between BYD Co Ltd and Bank of XiAn, you can compare the effects of market volatilities on BYD Co and Bank of XiAn 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 XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Bank of XiAn.
Diversification Opportunities for BYD Co and Bank of XiAn
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BYD and Bank is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 XiAn. 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 XiAn has no effect on the direction of BYD Co i.e., BYD Co and Bank of XiAn go up and down completely randomly.
Pair Corralation between BYD Co and Bank of XiAn
Assuming the 90 days trading horizon BYD Co is expected to generate 1.2 times less return on investment than Bank of XiAn. In addition to that, BYD Co is 1.07 times more volatile than Bank of XiAn. It trades about 0.06 of its total potential returns per unit of risk. Bank of XiAn is currently generating about 0.08 per unit of volatility. If you would invest 307.00 in Bank of XiAn on November 2, 2024 and sell it today you would earn a total of 44.00 from holding Bank of XiAn or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Bank of XiAn
Performance |
| Timeline |
| BYD Co |
| Bank of XiAn |
BYD Co and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Bank of XiAn
The main advantage of trading using opposite BYD Co and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Bank of XiAn 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 XiAn will offset losses from the drop in Bank of XiAn's long position.| BYD Co vs. Baoding Dongli Machinery | BYD Co vs. Dingli Communications Corp | BYD Co vs. Senci Electric Machinery | BYD Co vs. Nanjing Putian Telecommunications |
| Bank of XiAn vs. Simei Media Co | Bank of XiAn vs. Servyou Software Group | Bank of XiAn vs. Guangdong Jinma Entertainment | Bank of XiAn vs. Ciwen Media Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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