Correlation Between BYD Co and Qilu Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between BYD Co Ltd and Qilu Bank Co, you can compare the effects of market volatilities on BYD Co and Qilu 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 Qilu Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Qilu Bank.
Diversification Opportunities for BYD Co and Qilu Bank
Poor diversification
The 3 months correlation between BYD and Qilu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Qilu Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qilu 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 Qilu Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qilu Bank has no effect on the direction of BYD Co i.e., BYD Co and Qilu Bank go up and down completely randomly.
Pair Corralation between BYD Co and Qilu Bank
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 1.9 times more return on investment than Qilu Bank. However, BYD Co is 1.9 times more volatile than Qilu Bank Co. It trades about 0.66 of its potential returns per unit of risk. Qilu Bank Co is currently generating about 0.07 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Qilu Bank Co
Performance |
| Timeline |
| BYD Co |
| Qilu Bank |
BYD Co and Qilu Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Qilu Bank
The main advantage of trading using opposite BYD Co and Qilu Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Qilu 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 Qilu Bank will offset losses from the drop in Qilu 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 |
| Qilu Bank vs. YiDong Electronics Technology | Qilu Bank vs. Zhejiang Yongjin Metal | Qilu Bank vs. Uroica Mining Safety | Qilu Bank vs. Jiangxi Copper 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |