Correlation Between BYD Co and Circuit Fabology
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By analyzing existing cross correlation between BYD Co Ltd and Circuit Fabology Microelectronics, you can compare the effects of market volatilities on BYD Co and Circuit Fabology 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 Circuit Fabology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Circuit Fabology.
Diversification Opportunities for BYD Co and Circuit Fabology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BYD and Circuit is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Circuit Fabology Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Circuit Fabology Mic 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 Circuit Fabology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Circuit Fabology Mic has no effect on the direction of BYD Co i.e., BYD Co and Circuit Fabology go up and down completely randomly.
Pair Corralation between BYD Co and Circuit Fabology
Assuming the 90 days trading horizon BYD Co Ltd is expected to under-perform the Circuit Fabology. But the stock apears to be less risky and, when comparing its historical volatility, BYD Co Ltd is 1.81 times less risky than Circuit Fabology. The stock trades about -0.18 of its potential returns per unit of risk. The Circuit Fabology Microelectronics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,505 in Circuit Fabology Microelectronics on August 24, 2024 and sell it today you would earn a total of 185.00 from holding Circuit Fabology Microelectronics or generate 2.84% 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. Circuit Fabology Microelectron
Performance |
| Timeline |
| BYD Co |
| Circuit Fabology Mic |
BYD Co and Circuit Fabology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Circuit Fabology
The main advantage of trading using opposite BYD Co and Circuit Fabology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Circuit Fabology 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 Circuit Fabology will offset losses from the drop in Circuit Fabology's long position.| BYD Co vs. Shenzhen Centralcon Investment | BYD Co vs. Jiangsu Yueda Investment | BYD Co vs. Youyou Foods Co | BYD Co vs. Beijing Sanyuan Foods |
| Circuit Fabology vs. BeiGene | Circuit Fabology vs. Kweichow Moutai Co | Circuit Fabology vs. Beijing Roborock Technology | Circuit Fabology vs. G bits Network Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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