Correlation Between BYD Co and Beijing Kingsoft
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By analyzing existing cross correlation between BYD Co Ltd and Beijing Kingsoft Office, you can compare the effects of market volatilities on BYD Co and Beijing Kingsoft 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 Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Beijing Kingsoft.
Diversification Opportunities for BYD Co and Beijing Kingsoft
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BYD and Beijing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Beijing Kingsoft Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kingsoft Office 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 Beijing Kingsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kingsoft Office has no effect on the direction of BYD Co i.e., BYD Co and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between BYD Co and Beijing Kingsoft
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.53 times more return on investment than Beijing Kingsoft. However, BYD Co Ltd is 1.88 times less risky than Beijing Kingsoft. It trades about 0.09 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about 0.03 per unit of risk. If you would invest 20,942 in BYD Co Ltd on September 3, 2024 and sell it today you would earn a total of 6,541 from holding BYD Co Ltd or generate 31.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Beijing Kingsoft Office
Performance |
| Timeline |
| BYD Co |
| Beijing Kingsoft Office |
BYD Co and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Beijing Kingsoft
The main advantage of trading using opposite BYD Co and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Beijing Kingsoft 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 Beijing Kingsoft will offset losses from the drop in Beijing Kingsoft's long position.| BYD Co vs. Bus Online Co | BYD Co vs. Zhangjiagang Freetrade Science | BYD Co vs. Vontron Technology Co | BYD Co vs. Tianshui Huatian Technology |
| Beijing Kingsoft vs. Western Mining Co | Beijing Kingsoft vs. JCHX Mining Management | Beijing Kingsoft vs. Guangdong Silvere Sci | Beijing Kingsoft vs. Innovative Medical Management |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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