Correlation Between Inly Media and BYD Co
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By analyzing existing cross correlation between Inly Media Co and BYD Co Ltd, you can compare the effects of market volatilities on Inly Media 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 Inly Media with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inly Media and BYD Co.
Diversification Opportunities for Inly Media and BYD Co
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inly and BYD is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Inly Media 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 Inly Media 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 Inly Media 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 Inly Media i.e., Inly Media and BYD Co go up and down completely randomly.
Pair Corralation between Inly Media and BYD Co
Assuming the 90 days trading horizon Inly Media is expected to generate 2.78 times less return on investment than BYD Co. In addition to that, Inly Media is 2.02 times more volatile than BYD Co Ltd. It trades about 0.01 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about 0.08 per unit of volatility. If you would invest 19,703 in BYD Co Ltd on September 2, 2024 and sell it today you would earn a total of 7,780 from holding BYD Co Ltd or generate 39.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inly Media Co vs. BYD Co Ltd
Performance |
| Timeline |
| Inly Media |
| BYD Co |
Inly Media and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inly Media and BYD Co
The main advantage of trading using opposite Inly Media and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inly Media 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.| Inly Media vs. Milkyway Chemical Supply | Inly Media vs. Tianshui Huatian Technology | Inly Media vs. Western Superconducting Tech | Inly Media vs. Do Fluoride Chemicals Co |
| BYD Co vs. Biwin Storage Technology | BYD Co vs. PetroChina Co Ltd | BYD Co vs. Industrial and Commercial | BYD Co vs. China Construction Bank |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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