Correlation Between BYD Co and Allgens Medical
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By analyzing existing cross correlation between BYD Co Ltd and Allgens Medical Technology, you can compare the effects of market volatilities on BYD Co and Allgens Medical 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 Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Allgens Medical.
Diversification Opportunities for BYD Co and Allgens Medical
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between BYD and Allgens is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech 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 Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of BYD Co i.e., BYD Co and Allgens Medical go up and down completely randomly.
Pair Corralation between BYD Co and Allgens Medical
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.69 times more return on investment than Allgens Medical. However, BYD Co Ltd is 1.44 times less risky than Allgens Medical. It trades about 0.06 of its potential returns per unit of risk. Allgens Medical Technology is currently generating about -0.02 per unit of risk. If you would invest 24,518 in BYD Co Ltd on November 27, 2024 and sell it today you would earn a total of 13,110 from holding BYD Co Ltd or generate 53.47% 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. Allgens Medical Technology
Performance |
| Timeline |
| BYD Co |
| Allgens Medical Tech |
BYD Co and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Allgens Medical
The main advantage of trading using opposite BYD Co and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Allgens Medical 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 Allgens Medical will offset losses from the drop in Allgens Medical'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 |
| Allgens Medical vs. Rising Nonferrous Metals | Allgens Medical vs. Bloomage Biotechnology Corp | Allgens Medical vs. Shandong Hongchuang Aluminum | Allgens Medical vs. Sichuan Fulin Transportation |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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