Correlation Between FDG Electric and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both FDG Electric 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 FDG Electric and Yuexiu Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on FDG Electric 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 FDG Electric with a short position of Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Yuexiu Transport.
Diversification Opportunities for FDG Electric and Yuexiu Transport
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Yuexiu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles 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 FDG Electric 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 FDG Electric Vehicles 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 FDG Electric i.e., FDG Electric and Yuexiu Transport go up and down completely randomly.
Pair Corralation between FDG Electric and Yuexiu Transport
If you would invest 45.00 in Yuexiu Transport Infrastructure on August 27, 2024 and sell it today you would earn a total of 13.00 from holding Yuexiu Transport Infrastructure or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FDG Electric Vehicles vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| FDG Electric Vehicles |
| Yuexiu Transport Inf |
FDG Electric and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and Yuexiu Transport
The main advantage of trading using opposite FDG Electric and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric 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.| FDG Electric vs. Summit Hotel Properties | FDG Electric vs. Teleflex Incorporated | FDG Electric vs. RBC Bearings Incorporated | FDG Electric vs. The Wendys Co |
| Yuexiu Transport vs. Verra Mobility Corp | Yuexiu Transport vs. HUMANA INC | Yuexiu Transport vs. Aquagold International | Yuexiu Transport vs. Barloworld Ltd ADR |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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