Correlation Between Apyx Medical and BYD Company
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and BYD Company at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Apyx Medical and BYD Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical Corp and BYD Company Limited, you can compare the effects of market volatilities on Apyx Medical and BYD Company 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 Apyx Medical with a short position of BYD Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and BYD Company.
Diversification Opportunities for Apyx Medical and BYD Company
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apyx and BYD is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical Corp and BYD Company Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Limited and Apyx 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 Apyx Medical Corp are associated (or correlated) with BYD Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD Limited has no effect on the direction of Apyx Medical i.e., Apyx Medical and BYD Company go up and down completely randomly.
Pair Corralation between Apyx Medical and BYD Company
Assuming the 90 days trading horizon Apyx Medical Corp is expected to under-perform the BYD Company. In addition to that, Apyx Medical is 3.26 times more volatile than BYD Company Limited. It trades about -0.01 of its total potential returns per unit of risk. BYD Company Limited is currently generating about 0.16 per unit of volatility. If you would invest 3,244 in BYD Company Limited on November 2, 2024 and sell it today you would earn a total of 144.00 from holding BYD Company Limited or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical Corp vs. BYD Company Limited
Performance |
| Timeline |
| Apyx Medical Corp |
| BYD Limited |
Apyx Medical and BYD Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and BYD Company
The main advantage of trading using opposite Apyx Medical and BYD Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, BYD Company 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 Company will offset losses from the drop in BYD Company's long position.| Apyx Medical vs. AEON METALS LTD | Apyx Medical vs. Easy Software AG | Apyx Medical vs. Guidewire Software | Apyx Medical vs. NORTHEAST UTILITIES |
| BYD Company vs. Xiaomi | BYD Company vs. Geely Automobile Holdings | BYD Company vs. Nel ASA | BYD Company vs. JinkoSolar Holding Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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