Correlation Between Goldenstone Acquisition and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both Goldenstone Acquisition 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 Goldenstone Acquisition and Yuexiu Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldenstone Acquisition Ltd and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on Goldenstone Acquisition 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 Goldenstone Acquisition with a short position of Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldenstone Acquisition and Yuexiu Transport.
Diversification Opportunities for Goldenstone Acquisition and Yuexiu Transport
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Goldenstone and Yuexiu is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Goldenstone Acquisition Ltd 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 Goldenstone Acquisition 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 Goldenstone Acquisition Ltd 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 Goldenstone Acquisition i.e., Goldenstone Acquisition and Yuexiu Transport go up and down completely randomly.
Pair Corralation between Goldenstone Acquisition and Yuexiu Transport
Assuming the 90 days horizon Goldenstone Acquisition is expected to generate 30.64 times less return on investment than Yuexiu Transport. But when comparing it to its historical volatility, Goldenstone Acquisition Ltd is 7.16 times less risky than Yuexiu Transport. It trades about 0.02 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Yuexiu Transport Infrastructure on September 12, 2024 and sell it today you would earn a total of 36.00 from holding Yuexiu Transport Infrastructure or generate 163.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldenstone Acquisition Ltd vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| Goldenstone Acquisition |
| Yuexiu Transport Inf |
Goldenstone Acquisition and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldenstone Acquisition and Yuexiu Transport
The main advantage of trading using opposite Goldenstone Acquisition and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldenstone Acquisition 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.| Goldenstone Acquisition vs. Bill Com Holdings | Goldenstone Acquisition vs. ServiceNow | Goldenstone Acquisition vs. Hafnia Limited | Goldenstone Acquisition vs. TFI International |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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