Correlation Between BYD Co and Xinya Electronic
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By analyzing existing cross correlation between BYD Co Ltd and Xinya Electronic Co, you can compare the effects of market volatilities on BYD Co and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Xinya Electronic.
Diversification Opportunities for BYD Co and Xinya Electronic
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BYD and Xinya is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of BYD Co i.e., BYD Co and Xinya Electronic go up and down completely randomly.
Pair Corralation between BYD Co and Xinya Electronic
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.36 times more return on investment than Xinya Electronic. However, BYD Co Ltd is 2.75 times less risky than Xinya Electronic. It trades about 0.02 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.0 per unit of risk. If you would invest 27,495 in BYD Co Ltd on October 17, 2024 and sell it today you would earn a total of 135.00 from holding BYD Co Ltd or generate 0.49% 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. Xinya Electronic Co
Performance |
| Timeline |
| BYD Co |
| Xinya Electronic |
BYD Co and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Xinya Electronic
The main advantage of trading using opposite BYD Co and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| BYD Co vs. China Minmetals Rare | BYD Co vs. Uroica Mining Safety | BYD Co vs. North Copper Shanxi | BYD Co vs. Zhejiang Qianjiang Motorcycle |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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