Correlation Between Yuexiu Transport and NURAN WIRELESS
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and NURAN WIRELESS 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 Yuexiu Transport and NURAN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and NURAN WIRELESS INC, you can compare the effects of market volatilities on Yuexiu Transport and NURAN WIRELESS 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 Yuexiu Transport with a short position of NURAN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and NURAN WIRELESS.
Diversification Opportunities for Yuexiu Transport and NURAN WIRELESS
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yuexiu and NURAN is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and NURAN WIRELESS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NURAN WIRELESS INC and Yuexiu Transport 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 Yuexiu Transport Infrastructure are associated (or correlated) with NURAN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NURAN WIRELESS INC has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and NURAN WIRELESS go up and down completely randomly.
Pair Corralation between Yuexiu Transport and NURAN WIRELESS
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.38 times more return on investment than NURAN WIRELESS. However, Yuexiu Transport Infrastructure is 2.63 times less risky than NURAN WIRELESS. It trades about -0.14 of its potential returns per unit of risk. NURAN WIRELESS INC is currently generating about -0.07 per unit of risk. If you would invest 47.00 in Yuexiu Transport Infrastructure on October 25, 2024 and sell it today you would lose (3.00) from holding Yuexiu Transport Infrastructure or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. NURAN WIRELESS INC
Performance |
| Timeline |
| Yuexiu Transport Inf |
| NURAN WIRELESS INC |
Yuexiu Transport and NURAN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and NURAN WIRELESS
The main advantage of trading using opposite Yuexiu Transport and NURAN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, NURAN WIRELESS 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 NURAN WIRELESS will offset losses from the drop in NURAN WIRELESS's long position.| Yuexiu Transport vs. Universal Health Realty | Yuexiu Transport vs. Phibro Animal Health | Yuexiu Transport vs. CLOVER HEALTH INV | Yuexiu Transport vs. MPH Health Care |
| NURAN WIRELESS vs. Yuexiu Transport Infrastructure | NURAN WIRELESS vs. Gaztransport Technigaz SA | NURAN WIRELESS vs. Gold Road Resources | NURAN WIRELESS vs. ALERION CLEANPOWER |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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