Correlation Between BYD Co and Xiamen Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between BYD Co Ltd and Xiamen Bank Co, you can compare the effects of market volatilities on BYD Co and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Xiamen Bank.
Diversification Opportunities for BYD Co and Xiamen Bank
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between BYD and Xiamen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of BYD Co i.e., BYD Co and Xiamen Bank go up and down completely randomly.
Pair Corralation between BYD Co and Xiamen Bank
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 3.17 times more return on investment than Xiamen Bank. However, BYD Co is 3.17 times more volatile than Xiamen Bank Co. It trades about 0.66 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about -0.11 per unit of risk. If you would invest 27,450 in BYD Co Ltd on November 27, 2024 and sell it today you would earn a total of 10,178 from holding BYD Co Ltd or generate 37.08% 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. Xiamen Bank Co
Performance |
| Timeline |
| BYD Co |
| Xiamen Bank |
BYD Co and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Xiamen Bank
The main advantage of trading using opposite BYD Co and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank'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 |
| Xiamen Bank vs. Xinhua Winshare Publishing | Xiamen Bank vs. Kidswant Children Products | Xiamen Bank vs. Jahen Household Products | Xiamen Bank vs. Duzhe Publishing Media |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |