Correlation Between Xiamen Jihong and BYD Co
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Jihong Package and BYD Co Ltd, you can compare the effects of market volatilities on Xiamen Jihong and BYD Co 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 Xiamen Jihong with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and BYD Co.
Diversification Opportunities for Xiamen Jihong and BYD Co
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiamen and BYD is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Xiamen Jihong 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 Xiamen Jihong Package are associated (or correlated) with BYD Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD Co has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and BYD Co go up and down completely randomly.
Pair Corralation between Xiamen Jihong and BYD Co
Assuming the 90 days trading horizon Xiamen Jihong is expected to generate 1.07 times less return on investment than BYD Co. In addition to that, Xiamen Jihong is 1.7 times more volatile than BYD Co Ltd. It trades about 0.01 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about 0.02 per unit of volatility. If you would invest 26,072 in BYD Co Ltd on September 26, 2024 and sell it today you would earn a total of 2,770 from holding BYD Co Ltd or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. BYD Co Ltd
Performance |
| Timeline |
| Xiamen Jihong Package |
| BYD Co |
Xiamen Jihong and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and BYD Co
The main advantage of trading using opposite Xiamen Jihong and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, BYD Co 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 BYD Co will offset losses from the drop in BYD Co's long position.| Xiamen Jihong vs. Caihong Display Devices | Xiamen Jihong vs. Tianjin Ruixin Technology | Xiamen Jihong vs. Tianshui Huatian Technology | Xiamen Jihong vs. Shandong Sinoglory Health |
| BYD Co vs. Shanghai Rongtai Health | BYD Co vs. Xiamen Jihong Package | BYD Co vs. Dezhan HealthCare Co | BYD Co vs. Great Sun Foods 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |