Correlation Between BYD Co and Linewell Software
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By analyzing existing cross correlation between BYD Co Ltd and Linewell Software Co, you can compare the effects of market volatilities on BYD Co and Linewell Software 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 Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Linewell Software.
Diversification Opportunities for BYD Co and Linewell Software
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BYD and Linewell is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software 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 Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of BYD Co i.e., BYD Co and Linewell Software go up and down completely randomly.
Pair Corralation between BYD Co and Linewell Software
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.62 times more return on investment than Linewell Software. However, BYD Co Ltd is 1.6 times less risky than Linewell Software. It trades about 0.6 of its potential returns per unit of risk. Linewell Software Co is currently generating about 0.28 per unit of risk. If you would invest 27,450 in BYD Co Ltd on November 28, 2024 and sell it today you would earn a total of 9,799 from holding BYD Co Ltd or generate 35.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Linewell Software Co
Performance |
| Timeline |
| BYD Co |
| Linewell Software |
BYD Co and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Linewell Software
The main advantage of trading using opposite BYD Co and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Linewell Software 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 Linewell Software will offset losses from the drop in Linewell Software's long position.| BYD Co vs. Bus Online Co | BYD Co vs. ROPEOK Technology Group | BYD Co vs. INKON Life Technology | BYD Co vs. Farsoon Technology Co |
| Linewell Software vs. Wangneng Environment Co | Linewell Software vs. Baoshan Iron Steel | Linewell Software vs. Guangdong Liantai Environmental | Linewell Software vs. Southern PublishingMedia 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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