Correlation Between Jahen Household and BYD Co
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By analyzing existing cross correlation between Jahen Household Products and BYD Co Ltd, you can compare the effects of market volatilities on Jahen Household 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 Jahen Household with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and BYD Co.
Diversification Opportunities for Jahen Household and BYD Co
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jahen and BYD is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Jahen Household 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 Jahen Household Products 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 Jahen Household i.e., Jahen Household and BYD Co go up and down completely randomly.
Pair Corralation between Jahen Household and BYD Co
Assuming the 90 days trading horizon Jahen Household Products is expected to under-perform the BYD Co. In addition to that, Jahen Household is 2.59 times more volatile than BYD Co Ltd. It trades about -0.38 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about -0.18 per unit of volatility. If you would invest 28,368 in BYD Co Ltd on October 13, 2024 and sell it today you would lose (1,766) from holding BYD Co Ltd or give up 6.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. BYD Co Ltd
Performance |
| Timeline |
| Jahen Household Products |
| BYD Co |
Jahen Household and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and BYD Co
The main advantage of trading using opposite Jahen Household and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household 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.| Jahen Household vs. Anhui Huaren Health | Jahen Household vs. Kuangda Technology Group | Jahen Household vs. Digiwin Software Co | Jahen Household vs. Tianjin Ruixin Technology |
| BYD Co vs. Suzhou Oriental Semiconductor | BYD Co vs. FSPG Hi Tech Co | BYD Co vs. Runjian Communication Co | BYD Co vs. GRINM Semiconductor Materials |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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