Correlation Between Guangdong Transtek and BYD Co
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By analyzing existing cross correlation between Guangdong Transtek Medical and BYD Co Ltd, you can compare the effects of market volatilities on Guangdong Transtek 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 Guangdong Transtek with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and BYD Co.
Diversification Opportunities for Guangdong Transtek and BYD Co
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangdong and BYD is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Guangdong Transtek 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 Guangdong Transtek Medical 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 Guangdong Transtek i.e., Guangdong Transtek and BYD Co go up and down completely randomly.
Pair Corralation between Guangdong Transtek and BYD Co
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to under-perform the BYD Co. In addition to that, Guangdong Transtek is 3.0 times more volatile than BYD Co Ltd. It trades about -0.05 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about 0.0 per unit of volatility. If you would invest 28,100 in BYD Co Ltd on October 28, 2024 and sell it today you would lose (192.00) from holding BYD Co Ltd or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. BYD Co Ltd
Performance |
| Timeline |
| Guangdong Transtek |
| BYD Co |
Guangdong Transtek and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and BYD Co
The main advantage of trading using opposite Guangdong Transtek and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek 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.| Guangdong Transtek vs. Agricultural Bank of | Guangdong Transtek vs. Industrial and Commercial | Guangdong Transtek vs. Bank of China | Guangdong Transtek vs. China Construction Bank |
| BYD Co vs. Thunder Software Technology | BYD Co vs. Huatian Hotel Group | BYD Co vs. Hubei Tech Semiconductors | BYD Co vs. Guangzhou Dongfang Hotel |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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