Correlation Between BYD Company and Bayerische Motoren
Specify exactly 2 symbols:
By analyzing existing cross correlation between BYD Company Limited and Bayerische Motoren Werke, you can compare the effects of market volatilities on BYD Company and Bayerische Motoren 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 BYD Company with a short position of Bayerische Motoren. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Company and Bayerische Motoren.
Diversification Opportunities for BYD Company and Bayerische Motoren
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BYD and Bayerische is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BYD Company Limited and Bayerische Motoren Werke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayerische Motoren Werke and BYD Company 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 BYD Company Limited are associated (or correlated) with Bayerische Motoren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayerische Motoren Werke has no effect on the direction of BYD Company i.e., BYD Company and Bayerische Motoren go up and down completely randomly.
Pair Corralation between BYD Company and Bayerische Motoren
Assuming the 90 days horizon BYD Company Limited is expected to under-perform the Bayerische Motoren. But the stock apears to be less risky and, when comparing its historical volatility, BYD Company Limited is 1.12 times less risky than Bayerische Motoren. The stock trades about -0.29 of its potential returns per unit of risk. The Bayerische Motoren Werke is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 7,115 in Bayerische Motoren Werke on August 29, 2024 and sell it today you would lose (755.00) from holding Bayerische Motoren Werke or give up 10.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BYD Company Limited vs. Bayerische Motoren Werke
Performance |
| Timeline |
| BYD Limited |
| Bayerische Motoren Werke |
BYD Company and Bayerische Motoren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Company and Bayerische Motoren
The main advantage of trading using opposite BYD Company and Bayerische Motoren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Company position performs unexpectedly, Bayerische Motoren 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 Bayerische Motoren will offset losses from the drop in Bayerische Motoren's long position.| BYD Company vs. Xiaomi | BYD Company vs. Geely Automobile Holdings | BYD Company vs. Nel ASA | BYD Company vs. JinkoSolar Holding Co |
| Bayerische Motoren vs. Chuangs China Investments | Bayerische Motoren vs. HF FOODS GRP | Bayerische Motoren vs. WisdomTree Investments | Bayerische Motoren vs. SENECA FOODS A |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges |