Correlation Between BYD and Accesso Technology
Can any of the company-specific risk be diversified away by investing in both BYD and Accesso Technology 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 Accesso Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BYD Co and Accesso Technology Group, you can compare the effects of market volatilities on BYD and Accesso Technology 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 Accesso Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD and Accesso Technology.
Diversification Opportunities for BYD and Accesso Technology
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between BYD and Accesso is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co and Accesso Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accesso Technology 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 Accesso Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accesso Technology has no effect on the direction of BYD i.e., BYD and Accesso Technology go up and down completely randomly.
Pair Corralation between BYD and Accesso Technology
Assuming the 90 days trading horizon BYD Co is expected to generate 1.8 times more return on investment than Accesso Technology. However, BYD is 1.8 times more volatile than Accesso Technology Group. It trades about 0.03 of its potential returns per unit of risk. Accesso Technology Group is currently generating about -0.09 per unit of risk. If you would invest 3,560 in BYD Co on November 4, 2024 and sell it today you would earn a total of 0.00 from holding BYD Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co vs. Accesso Technology Group
Performance |
| Timeline |
| BYD Co |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Accesso Technology |
BYD and Accesso Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD and Accesso Technology
The main advantage of trading using opposite BYD and Accesso Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD position performs unexpectedly, Accesso Technology 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 Accesso Technology will offset losses from the drop in Accesso Technology's long position.| BYD vs. Check Point Software | BYD vs. Bytes Technology | BYD vs. Lindsell Train Investment | BYD vs. Monks Investment Trust |
| Accesso Technology vs. Vietnam Enterprise Investments | Accesso Technology vs. AMG Advanced Metallurgical | Accesso Technology vs. Europa Metals | Accesso Technology vs. Golden Metal Resources |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |