Correlation Between Eyebright Medical and BYD Co
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By analyzing existing cross correlation between Eyebright Medical Technology and BYD Co Ltd, you can compare the effects of market volatilities on Eyebright Medical 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 Eyebright Medical with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and BYD Co.
Diversification Opportunities for Eyebright Medical and BYD Co
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eyebright and BYD is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Eyebright Medical 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 Eyebright Medical Technology 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 Eyebright Medical i.e., Eyebright Medical and BYD Co go up and down completely randomly.
Pair Corralation between Eyebright Medical and BYD Co
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 1.42 times more return on investment than BYD Co. However, Eyebright Medical is 1.42 times more volatile than BYD Co Ltd. It trades about 0.11 of its potential returns per unit of risk. BYD Co Ltd is currently generating about 0.0 per unit of risk. If you would invest 9,028 in Eyebright Medical Technology on October 28, 2024 and sell it today you would earn a total of 919.00 from holding Eyebright Medical Technology or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. BYD Co Ltd
Performance |
| Timeline |
| Eyebright Medical |
| BYD Co |
Eyebright Medical and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and BYD Co
The main advantage of trading using opposite Eyebright Medical and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical 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.| Eyebright Medical vs. Agricultural Bank of | Eyebright Medical vs. Industrial and Commercial | Eyebright Medical vs. Bank of China | Eyebright Medical vs. China Construction Bank |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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