Correlation Between BYD Co and Anhui Deli
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By analyzing existing cross correlation between BYD Co Ltd and Anhui Deli Household, you can compare the effects of market volatilities on BYD Co and Anhui Deli 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 Co with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Anhui Deli.
Diversification Opportunities for BYD Co and Anhui Deli
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BYD and Anhui is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household and BYD Co 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 Co Ltd are associated (or correlated) with Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of BYD Co i.e., BYD Co and Anhui Deli go up and down completely randomly.
Pair Corralation between BYD Co and Anhui Deli
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.6 times more return on investment than Anhui Deli. However, BYD Co Ltd is 1.67 times less risky than Anhui Deli. It trades about -0.03 of its potential returns per unit of risk. Anhui Deli Household is currently generating about -0.04 per unit of risk. If you would invest 28,300 in BYD Co Ltd on September 24, 2024 and sell it today you would lose (280.00) from holding BYD Co Ltd or give up 0.99% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BYD Co Ltd vs. Anhui Deli Household
Performance |
Timeline |
BYD Co |
Anhui Deli Household |
BYD Co and Anhui Deli Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BYD Co and Anhui Deli
The main advantage of trading using opposite BYD Co and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Anhui Deli 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 Anhui Deli will offset losses from the drop in Anhui Deli's long position.BYD Co vs. Marssenger Kitchenware Co | BYD Co vs. Quectel Wireless Solutions | BYD Co vs. Jahen Household Products | BYD Co vs. Zhejiang Daily Media |
Anhui Deli vs. BYD Co Ltd | Anhui Deli vs. China Mobile Limited | Anhui Deli vs. Agricultural Bank of | Anhui Deli vs. Industrial and Commercial |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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