Correlation Between Qiming Information and BYD Co
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By analyzing existing cross correlation between Qiming Information Technology and BYD Co Ltd, you can compare the effects of market volatilities on Qiming Information 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 Qiming Information with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qiming Information and BYD Co.
Diversification Opportunities for Qiming Information and BYD Co
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Qiming and BYD is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Qiming Information Technology and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Qiming Information 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 Qiming Information Technology 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 Qiming Information i.e., Qiming Information and BYD Co go up and down completely randomly.
Pair Corralation between Qiming Information and BYD Co
Assuming the 90 days trading horizon Qiming Information Technology is expected to under-perform the BYD Co. In addition to that, Qiming Information is 2.32 times more volatile than BYD Co Ltd. It trades about -0.44 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about -0.11 per unit of volatility. If you would invest 28,049 in BYD Co Ltd on October 8, 2024 and sell it today you would lose (976.00) from holding BYD Co Ltd or give up 3.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Qiming Information Technology vs. BYD Co Ltd
Performance |
Timeline |
Qiming Information |
BYD Co |
Qiming Information and BYD Co Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qiming Information and BYD Co
The main advantage of trading using opposite Qiming Information and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qiming Information 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.Qiming Information vs. PetroChina Co Ltd | Qiming Information vs. Gansu Jiu Steel | Qiming Information vs. Aba Chemicals Corp | Qiming Information vs. Yes Optoelectronics Co |
BYD Co vs. Zhengping RoadBridge Constr | BYD Co vs. Dhc Software Co | BYD Co vs. Chongqing Changan Automobile | BYD Co vs. Sichuan Fulin Transportation |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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