Correlation Between Great Sun and BYD Co
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By analyzing existing cross correlation between Great Sun Foods Co and BYD Co Ltd, you can compare the effects of market volatilities on Great Sun 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 Great Sun with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and BYD Co.
Diversification Opportunities for Great Sun and BYD Co
Average diversification
The 3 months correlation between Great and BYD is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods 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 Great Sun 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 Great Sun Foods 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 Great Sun i.e., Great Sun and BYD Co go up and down completely randomly.
Pair Corralation between Great Sun and BYD Co
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 2.38 times more return on investment than BYD Co. However, Great Sun is 2.38 times more volatile than BYD Co Ltd. It trades about 0.07 of its potential returns per unit of risk. BYD Co Ltd is currently generating about -0.12 per unit of risk. If you would invest 384.00 in Great Sun Foods Co on October 14, 2024 and sell it today you would earn a total of 53.00 from holding Great Sun Foods Co or generate 13.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. BYD Co Ltd
Performance |
| Timeline |
| Great Sun Foods |
| BYD Co |
Great Sun and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and BYD Co
The main advantage of trading using opposite Great Sun and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun 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.| Great Sun vs. Guangzhou Jinyi Media | Great Sun vs. GUOMAI Culture Media | Great Sun vs. Shenzhen AV Display Co | Great Sun vs. Zhongyin Babi Food |
| BYD Co vs. Allmed Medical Products | BYD Co vs. Guangdong Transtek Medical | BYD Co vs. Eyebright Medical Technology | BYD Co vs. Kontour Medical 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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