Correlation Between Gem Year and BYD Co
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By analyzing existing cross correlation between Gem Year Industrial Co and BYD Co Ltd, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and BYD Co.
Diversification Opportunities for Gem Year and BYD Co
Poor diversification
The 3 months correlation between Gem and BYD is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and BYD Co go up and down completely randomly.
Pair Corralation between Gem Year and BYD Co
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to under-perform the BYD Co. In addition to that, Gem Year is 1.09 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 0.02 per unit of volatility. If you would invest 25,902 in BYD Co Ltd on August 26, 2024 and sell it today you would earn a total of 1,947 from holding BYD Co Ltd or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. BYD Co Ltd
Performance |
| Timeline |
| Gem Year Industrial |
| BYD Co |
Gem Year and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and BYD Co
The main advantage of trading using opposite Gem Year and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Jinhe Biotechnology Co | Gem Year vs. Heilongjiang Transport Development | Gem Year vs. Hunan TV Broadcast | Gem Year vs. Zhangjiagang Freetrade Science |
| BYD Co vs. Hubeiyichang Transportation Group | BYD Co vs. Gem Year Industrial Co | BYD Co vs. Pengxin International Mining | BYD Co vs. Guangdong Jingyi Metal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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