Correlation Between Jiangsu Yueda and BYD Co
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Yueda Investment and BYD Co Ltd, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and BYD Co.
Diversification Opportunities for Jiangsu Yueda and BYD Co
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and BYD is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and BYD Co go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and BYD Co
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 1.31 times more return on investment than BYD Co. However, Jiangsu Yueda is 1.31 times more volatile than BYD Co Ltd. It trades about 0.01 of its potential returns per unit of risk. BYD Co Ltd is currently generating about 0.01 per unit of risk. If you would invest 467.00 in Jiangsu Yueda Investment on August 27, 2024 and sell it today you would lose (17.00) from holding Jiangsu Yueda Investment or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. BYD Co Ltd
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| BYD Co |
Jiangsu Yueda and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and BYD Co
The main advantage of trading using opposite Jiangsu Yueda and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Ming Yang Smart | Jiangsu Yueda vs. 159681 | Jiangsu Yueda vs. 159005 | Jiangsu Yueda vs. Loctek Ergonomic Technology |
| BYD Co vs. Changchun Faway Automobile | BYD Co vs. Songz Automobile Air | BYD Co vs. Tongyu Communication | BYD Co vs. Hubei Yingtong Telecommunication |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |