Correlation Between G5 Entertainment and BYD
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and BYD at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining G5 Entertainment and BYD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G5 Entertainment AB and BYD Co, you can compare the effects of market volatilities on G5 Entertainment and BYD 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 G5 Entertainment with a short position of BYD. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and BYD.
Diversification Opportunities for G5 Entertainment and BYD
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between 0QUS and BYD is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment AB and BYD Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and G5 Entertainment 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 G5 Entertainment AB are associated (or correlated) with BYD. 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 G5 Entertainment i.e., G5 Entertainment and BYD go up and down completely randomly.
Pair Corralation between G5 Entertainment and BYD
Assuming the 90 days trading horizon G5 Entertainment AB is expected to generate 0.41 times more return on investment than BYD. However, G5 Entertainment AB is 2.41 times less risky than BYD. It trades about 0.27 of its potential returns per unit of risk. BYD Co is currently generating about 0.03 per unit of risk. If you would invest 10,700 in G5 Entertainment AB on October 25, 2024 and sell it today you would earn a total of 1,280 from holding G5 Entertainment AB or generate 11.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
G5 Entertainment AB vs. BYD Co
Performance |
Timeline |
G5 Entertainment |
BYD Co |
G5 Entertainment and BYD Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G5 Entertainment and BYD
The main advantage of trading using opposite G5 Entertainment and BYD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, BYD 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 will offset losses from the drop in BYD's long position.G5 Entertainment vs. Spirent Communications plc | G5 Entertainment vs. Infrastrutture Wireless Italiane | G5 Entertainment vs. Public Storage | G5 Entertainment vs. Datalogic |
BYD vs. LBG Media PLC | BYD vs. Synthomer plc | BYD vs. G5 Entertainment AB | BYD vs. Ecclesiastical Insurance Office |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |