Correlation Between Suzhou Oriental and BYD Co
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and BYD Co Ltd, you can compare the effects of market volatilities on Suzhou Oriental 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 Suzhou Oriental with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and BYD Co.
Diversification Opportunities for Suzhou Oriental and BYD Co
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and BYD is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Suzhou Oriental 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 Suzhou Oriental Semiconductor 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 Suzhou Oriental i.e., Suzhou Oriental and BYD Co go up and down completely randomly.
Pair Corralation between Suzhou Oriental and BYD Co
Assuming the 90 days trading horizon Suzhou Oriental Semiconductor is expected to under-perform the BYD Co. In addition to that, Suzhou Oriental is 1.99 times more volatile than BYD Co Ltd. It trades about -0.06 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about 0.01 per unit of volatility. If you would invest 27,735 in BYD Co Ltd on October 13, 2024 and sell it today you would lose (1,133) from holding BYD Co Ltd or give up 4.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. BYD Co Ltd
Performance |
| Timeline |
| Suzhou Oriental Semi |
| BYD Co |
Suzhou Oriental and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and BYD Co
The main advantage of trading using opposite Suzhou Oriental and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental 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.| Suzhou Oriental vs. Allwin Telecommunication Co | Suzhou Oriental vs. Wuhan Yangtze Communication | Suzhou Oriental vs. China Mobile Limited | Suzhou Oriental vs. Ingenic Semiconductor |
| BYD Co vs. Suzhou Oriental Semiconductor | BYD Co vs. FSPG Hi Tech Co | BYD Co vs. Runjian Communication Co | BYD Co vs. GRINM Semiconductor Materials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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