Correlation Between Sunwoda Electronic and BYD Co
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By analyzing existing cross correlation between Sunwoda Electronic and BYD Co Ltd, you can compare the effects of market volatilities on Sunwoda Electronic 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 Sunwoda Electronic with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwoda Electronic and BYD Co.
Diversification Opportunities for Sunwoda Electronic and BYD Co
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunwoda and BYD is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sunwoda Electronic and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Sunwoda Electronic 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 Sunwoda Electronic 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 Sunwoda Electronic i.e., Sunwoda Electronic and BYD Co go up and down completely randomly.
Pair Corralation between Sunwoda Electronic and BYD Co
Assuming the 90 days trading horizon Sunwoda Electronic is expected to under-perform the BYD Co. In addition to that, Sunwoda Electronic is 1.32 times more volatile than BYD Co Ltd. It trades about -0.04 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about -0.02 per unit of volatility. If you would invest 28,300 in BYD Co Ltd on September 24, 2024 and sell it today you would lose (230.00) from holding BYD Co Ltd or give up 0.81% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sunwoda Electronic vs. BYD Co Ltd
Performance |
Timeline |
Sunwoda Electronic |
BYD Co |
Sunwoda Electronic and BYD Co Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunwoda Electronic and BYD Co
The main advantage of trading using opposite Sunwoda Electronic and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwoda Electronic 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.Sunwoda Electronic vs. Kweichow Moutai Co | Sunwoda Electronic vs. Contemporary Amperex Technology | Sunwoda Electronic vs. G bits Network Technology | Sunwoda Electronic vs. BYD Co Ltd |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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