Correlation Between BYD Co and Zhuzhou Kibing
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By analyzing existing cross correlation between BYD Co Ltd and Zhuzhou Kibing Group, you can compare the effects of market volatilities on BYD Co and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Zhuzhou Kibing.
Diversification Opportunities for BYD Co and Zhuzhou Kibing
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and Zhuzhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of BYD Co i.e., BYD Co and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between BYD Co and Zhuzhou Kibing
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.82 times more return on investment than Zhuzhou Kibing. However, BYD Co Ltd is 1.22 times less risky than Zhuzhou Kibing. It trades about 0.02 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.05 per unit of risk. If you would invest 26,072 in BYD Co Ltd on September 26, 2024 and sell it today you would earn a total of 2,770 from holding BYD Co Ltd or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
BYD Co Ltd vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| BYD Co |
| Zhuzhou Kibing Group |
BYD Co and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Zhuzhou Kibing
The main advantage of trading using opposite BYD Co and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| BYD Co vs. Shanghai Rongtai Health | BYD Co vs. Xiamen Jihong Package | BYD Co vs. Dezhan HealthCare Co | BYD Co vs. Great Sun Foods Co |
| Zhuzhou Kibing vs. Jiangsu Jinling Sports | Zhuzhou Kibing vs. Panda Financial Holding | Zhuzhou Kibing vs. China Sports Industry | Zhuzhou Kibing vs. Caihong Display Devices |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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