Correlation Between Wuxi Xuelang and BYD Co
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By analyzing existing cross correlation between Wuxi Xuelang Environmental and BYD Co Ltd, you can compare the effects of market volatilities on Wuxi Xuelang 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 Wuxi Xuelang with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Xuelang and BYD Co.
Diversification Opportunities for Wuxi Xuelang and BYD Co
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wuxi and BYD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Xuelang Environmental and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Wuxi Xuelang 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 Wuxi Xuelang Environmental 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 Wuxi Xuelang i.e., Wuxi Xuelang and BYD Co go up and down completely randomly.
Pair Corralation between Wuxi Xuelang and BYD Co
If you would invest 27,128 in BYD Co Ltd on November 7, 2024 and sell it today you would earn a total of 322.00 from holding BYD Co Ltd or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Wuxi Xuelang Environmental vs. BYD Co Ltd
Performance |
| Timeline |
| Wuxi Xuelang Environ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BYD Co |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wuxi Xuelang and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Xuelang and BYD Co
The main advantage of trading using opposite Wuxi Xuelang and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Xuelang 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.The idea behind Wuxi Xuelang Environmental and BYD Co Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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