Correlation Between BYD and Flow Traders
Can any of the company-specific risk be diversified away by investing in both BYD and Flow Traders 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 BYD and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BYD Co and Flow Traders NV, you can compare the effects of market volatilities on BYD and Flow Traders 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 with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD and Flow Traders.
Diversification Opportunities for BYD and Flow Traders
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BYD and Flow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co and Flow Traders NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders NV and BYD 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 are associated (or correlated) with Flow Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Traders NV has no effect on the direction of BYD i.e., BYD and Flow Traders go up and down completely randomly.
Pair Corralation between BYD and Flow Traders
Assuming the 90 days trading horizon BYD is expected to generate 2.05 times less return on investment than Flow Traders. In addition to that, BYD is 2.23 times more volatile than Flow Traders NV. It trades about 0.06 of its total potential returns per unit of risk. Flow Traders NV is currently generating about 0.25 per unit of volatility. If you would invest 2,114 in Flow Traders NV on October 10, 2024 and sell it today you would earn a total of 199.00 from holding Flow Traders NV or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co vs. Flow Traders NV
Performance |
| Timeline |
| BYD Co |
| Flow Traders NV |
BYD and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD and Flow Traders
The main advantage of trading using opposite BYD and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD position performs unexpectedly, Flow Traders 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 Flow Traders will offset losses from the drop in Flow Traders' long position.| BYD vs. Panther Metals PLC | BYD vs. First Class Metals | BYD vs. CNH Industrial NV | BYD vs. Kinnevik Investment AB |
| Flow Traders vs. EJF Investments | Flow Traders vs. Charter Communications Cl | Flow Traders vs. Tatton Asset Management | Flow Traders vs. Batm Advanced Communications |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |