Correlation Between Jiujiang Shanshui and BYD Co
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiujiang Shanshui Technology and BYD Co Ltd, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and BYD Co.
Diversification Opportunities for Jiujiang Shanshui and BYD Co
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiujiang and BYD is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and BYD Co go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and BYD Co
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 1.73 times more return on investment than BYD Co. However, Jiujiang Shanshui is 1.73 times more volatile than BYD Co Ltd. It trades about 0.08 of its potential returns per unit of risk. BYD Co Ltd is currently generating about -0.28 per unit of risk. If you would invest 1,591 in Jiujiang Shanshui Technology on September 5, 2024 and sell it today you would earn a total of 54.00 from holding Jiujiang Shanshui Technology or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. BYD Co Ltd
Performance |
| Timeline |
| Jiujiang Shanshui |
| BYD Co |
Jiujiang Shanshui and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and BYD Co
The main advantage of trading using opposite Jiujiang Shanshui and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Rongsheng Petrochemical Co | Jiujiang Shanshui vs. Shandong Gold Mining |
| BYD Co vs. Jiujiang Shanshui Technology | BYD Co vs. Jiangxi JDL Environmental | BYD Co vs. Changchun UP Optotech | BYD Co vs. Northking Information Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |