Correlation Between Zhongtong Guomai and BYD Co
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By analyzing existing cross correlation between Zhongtong Guomai Communication and BYD Co Ltd, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and BYD Co.
Diversification Opportunities for Zhongtong Guomai and BYD Co
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhongtong and BYD is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and BYD Co go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and BYD Co
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.6 times more return on investment than BYD Co. However, Zhongtong Guomai is 1.6 times more volatile than BYD Co Ltd. It trades about 0.05 of its potential returns per unit of risk. BYD Co Ltd is currently generating about 0.04 per unit of risk. If you would invest 896.00 in Zhongtong Guomai Communication on September 14, 2024 and sell it today you would earn a total of 258.00 from holding Zhongtong Guomai Communication or generate 28.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. BYD Co Ltd
Performance |
| Timeline |
| Zhongtong Guomai Com |
| BYD Co |
Zhongtong Guomai and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and BYD Co
The main advantage of trading using opposite Zhongtong Guomai and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Fiberhome Telecommunication Technologies | Zhongtong Guomai vs. Kuang Chi Technologies | Zhongtong Guomai vs. Shenwu Energy Saving | Zhongtong Guomai vs. Agricultural Bank of |
| BYD Co vs. Yonyou Auto Information | BYD Co vs. Anhui Jianghuai Automobile | BYD Co vs. Digital China Information | BYD Co vs. Zhongtong Guomai Communication |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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