Correlation Between Aldel Financial and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Yuexiu Transport 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 Aldel Financial and Yuexiu Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on Aldel Financial and Yuexiu Transport 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 Aldel Financial with a short position of Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Yuexiu Transport.
Diversification Opportunities for Aldel Financial and Yuexiu Transport
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aldel and Yuexiu is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf and Aldel Financial 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 Aldel Financial II are associated (or correlated) with Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of Aldel Financial i.e., Aldel Financial and Yuexiu Transport go up and down completely randomly.
Pair Corralation between Aldel Financial and Yuexiu Transport
If you would invest 993.00 in Aldel Financial II on October 26, 2024 and sell it today you would earn a total of 5.00 from holding Aldel Financial II or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aldel Financial II vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| Aldel Financial II |
| Yuexiu Transport Inf |
Aldel Financial and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Yuexiu Transport
The main advantage of trading using opposite Aldel Financial and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport's long position.| Aldel Financial vs. Voyager Acquisition Corp | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I | Aldel Financial vs. YHN Acquisition I |
| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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