Correlation Between Cultural Investment and BYD Co
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By analyzing existing cross correlation between Cultural Investment Holdings and BYD Co Ltd, you can compare the effects of market volatilities on Cultural Investment 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 Cultural Investment with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and BYD Co.
Diversification Opportunities for Cultural Investment and BYD Co
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cultural and BYD is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Cultural Investment 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 Cultural Investment Holdings 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 Cultural Investment i.e., Cultural Investment and BYD Co go up and down completely randomly.
Pair Corralation between Cultural Investment and BYD Co
Assuming the 90 days trading horizon Cultural Investment is expected to generate 8.57 times less return on investment than BYD Co. In addition to that, Cultural Investment is 2.18 times more volatile than BYD Co Ltd. It trades about 0.0 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about 0.08 per unit of volatility. If you would invest 19,703 in BYD Co Ltd on September 2, 2024 and sell it today you would earn a total of 7,780 from holding BYD Co Ltd or generate 39.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. BYD Co Ltd
Performance |
| Timeline |
| Cultural Investment |
| BYD Co |
Cultural Investment and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and BYD Co
The main advantage of trading using opposite Cultural Investment and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment 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.| Cultural Investment vs. China Minmetals Rare | Cultural Investment vs. Chengtun Mining Group | Cultural Investment vs. Qinghaihuading Industrial Co | Cultural Investment vs. China Life Insurance |
| BYD Co vs. Biwin Storage Technology | BYD Co vs. PetroChina Co Ltd | BYD Co vs. Industrial and Commercial | BYD Co vs. China Construction Bank |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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