Correlation Between BYD Company and Yamaha
Can any of the company-specific risk be diversified away by investing in both BYD Company and Yamaha 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 BYD Company and Yamaha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BYD Company Limited and Yamaha Motor Co, you can compare the effects of market volatilities on BYD Company and Yamaha 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 Yamaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Company and Yamaha.
Diversification Opportunities for BYD Company and Yamaha
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BYD and Yamaha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BYD Company Limited and Yamaha Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamaha Motor 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 Yamaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamaha Motor has no effect on the direction of BYD Company i.e., BYD Company and Yamaha go up and down completely randomly.
Pair Corralation between BYD Company and Yamaha
If you would invest 0.00 in Yamaha Motor Co on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Yamaha Motor Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
BYD Company Limited vs. Yamaha Motor Co
Performance |
| Timeline |
| BYD Limited |
| Yamaha Motor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
BYD Company and Yamaha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Company and Yamaha
The main advantage of trading using opposite BYD Company and Yamaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Company position performs unexpectedly, Yamaha 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 Yamaha will offset losses from the drop in Yamaha's long position.| BYD Company vs. Xiaomi | BYD Company vs. Geely Automobile Holdings | BYD Company vs. Nel ASA | BYD Company vs. JinkoSolar Holding Co |
| Yamaha vs. Altair Engineering | Yamaha vs. Pentair plc | Yamaha vs. DELTA AIR LINES | Yamaha vs. Wyndham Hotels Resorts |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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