Correlation Between Agricultural Bank and BYD Co
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By analyzing existing cross correlation between Agricultural Bank of and BYD Co Ltd, you can compare the effects of market volatilities on Agricultural Bank 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 Agricultural Bank with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and BYD Co.
Diversification Opportunities for Agricultural Bank and BYD Co
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and BYD is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Agricultural Bank 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 Agricultural Bank of 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 Agricultural Bank i.e., Agricultural Bank and BYD Co go up and down completely randomly.
Pair Corralation between Agricultural Bank and BYD Co
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.53 times more return on investment than BYD Co. However, Agricultural Bank of is 1.88 times less risky than BYD Co. It trades about 0.05 of its potential returns per unit of risk. BYD Co Ltd is currently generating about -0.19 per unit of risk. If you would invest 476.00 in Agricultural Bank of on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Agricultural Bank of or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. BYD Co Ltd
Performance |
| Timeline |
| Agricultural Bank |
| BYD Co |
Agricultural Bank and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and BYD Co
The main advantage of trading using opposite Agricultural Bank and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank 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.| Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Anhui Jianghuai Automobile | Agricultural Bank vs. Uxi Unicomp Technology | Agricultural Bank vs. Jiujiang Shanshui Technology |
| BYD Co vs. Guangzhou Jointas Chemical | BYD Co vs. Glodon Software Co | BYD Co vs. Longxing Chemical Stock | BYD Co vs. Xilong Chemical Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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