Correlation Between BYD Co and GalaxyCore
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By analyzing existing cross correlation between BYD Co Ltd and GalaxyCore, you can compare the effects of market volatilities on BYD Co and GalaxyCore 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 GalaxyCore. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and GalaxyCore.
Diversification Opportunities for BYD Co and GalaxyCore
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BYD and GalaxyCore is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and GalaxyCore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GalaxyCore 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 GalaxyCore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GalaxyCore has no effect on the direction of BYD Co i.e., BYD Co and GalaxyCore go up and down completely randomly.
Pair Corralation between BYD Co and GalaxyCore
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.9 times more return on investment than GalaxyCore. However, BYD Co Ltd is 1.12 times less risky than GalaxyCore. It trades about 0.16 of its potential returns per unit of risk. GalaxyCore is currently generating about 0.0 per unit of risk. If you would invest 28,255 in BYD Co Ltd on December 10, 2024 and sell it today you would earn a total of 6,845 from holding BYD Co Ltd or generate 24.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BYD Co Ltd vs. GalaxyCore
Performance |
Timeline |
BYD Co |
GalaxyCore |
BYD Co and GalaxyCore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BYD Co and GalaxyCore
The main advantage of trading using opposite BYD Co and GalaxyCore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, GalaxyCore 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 GalaxyCore will offset losses from the drop in GalaxyCore's long position.BYD Co vs. ROPEOK Technology Group | BYD Co vs. Linewell Software Co | BYD Co vs. Keeson Technology Corp | BYD Co vs. Jiujiang Shanshui Technology |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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