Correlation Between Yonyou Auto and BYD Co
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By analyzing existing cross correlation between Yonyou Auto Information and BYD Co Ltd, you can compare the effects of market volatilities on Yonyou Auto 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 Yonyou Auto with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and BYD Co.
Diversification Opportunities for Yonyou Auto and BYD Co
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yonyou and BYD is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Yonyou Auto 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 Yonyou Auto Information 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 Yonyou Auto i.e., Yonyou Auto and BYD Co go up and down completely randomly.
Pair Corralation between Yonyou Auto and BYD Co
Assuming the 90 days trading horizon Yonyou Auto Information is expected to under-perform the BYD Co. In addition to that, Yonyou Auto is 1.34 times more volatile than BYD Co Ltd. It trades about -0.02 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about 0.04 per unit of volatility. If you would invest 23,214 in BYD Co Ltd on September 14, 2024 and sell it today you would earn a total of 4,437 from holding BYD Co Ltd or generate 19.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonyou Auto Information vs. BYD Co Ltd
Performance |
| Timeline |
| Yonyou Auto Information |
| BYD Co |
Yonyou Auto and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyou Auto and BYD Co
The main advantage of trading using opposite Yonyou Auto and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto 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.| Yonyou Auto vs. Shengda Mining Co | Yonyou Auto vs. Guangzhou Tinci Materials | Yonyou Auto vs. Hengerda New Materials | Yonyou Auto vs. Cangzhou Mingzhu Plastic |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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