Correlation Between BYD Co and Jiangyin Jianghua
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By analyzing existing cross correlation between BYD Co Ltd and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on BYD Co and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Jiangyin Jianghua.
Diversification Opportunities for BYD Co and Jiangyin Jianghua
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between BYD and Jiangyin is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of BYD Co i.e., BYD Co and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between BYD Co and Jiangyin Jianghua
Assuming the 90 days trading horizon BYD Co is expected to generate 2.06 times less return on investment than Jiangyin Jianghua. But when comparing it to its historical volatility, BYD Co Ltd is 1.02 times less risky than Jiangyin Jianghua. It trades about 0.06 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,553 in Jiangyin Jianghua Microelectronics on November 4, 2024 and sell it today you would earn a total of 48.00 from holding Jiangyin Jianghua Microelectronics or generate 3.09% 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. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| BYD Co |
| Jiangyin Jianghua |
BYD Co and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Jiangyin Jianghua
The main advantage of trading using opposite BYD Co and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| BYD Co vs. Maccura Biotechnology Co | BYD Co vs. Jiangsu GDK Biotechnology | BYD Co vs. Chongqing Brewery Co | BYD Co vs. Shenzhen Bioeasy Biotechnology |
| Jiangyin Jianghua vs. Nanjing OLO Home | Jiangyin Jianghua vs. Zhangjiagang Elegant Home | Jiangyin Jianghua vs. Ziel Home Furnishing | Jiangyin Jianghua vs. Sinomach Automobile 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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