Correlation Between Yuexiu Transport and GENTING SG
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and GENTING SG 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 GENTING SG 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 GENTING SG LTD, you can compare the effects of market volatilities on Yuexiu Transport and GENTING SG 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 GENTING SG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and GENTING SG.
Diversification Opportunities for Yuexiu Transport and GENTING SG
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yuexiu and GENTING is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and GENTING SG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENTING SG LTD 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 GENTING SG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENTING SG LTD has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and GENTING SG go up and down completely randomly.
Pair Corralation between Yuexiu Transport and GENTING SG
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.76 times more return on investment than GENTING SG. However, Yuexiu Transport Infrastructure is 1.31 times less risky than GENTING SG. It trades about -0.04 of its potential returns per unit of risk. GENTING SG LTD is currently generating about -0.11 per unit of risk. If you would invest 46.00 in Yuexiu Transport Infrastructure on November 3, 2024 and sell it today you would lose (1.00) from holding Yuexiu Transport Infrastructure or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. GENTING SG LTD
Performance |
| Timeline |
| Yuexiu Transport Inf |
| GENTING SG LTD |
Yuexiu Transport and GENTING SG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and GENTING SG
The main advantage of trading using opposite Yuexiu Transport and GENTING SG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, GENTING SG 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 GENTING SG will offset losses from the drop in GENTING SG's long position.| Yuexiu Transport vs. Southwest Airlines Co | Yuexiu Transport vs. Westinghouse Air Brake | Yuexiu Transport vs. FORWARD AIR P | Yuexiu Transport vs. International Consolidated Airlines |
| GENTING SG vs. Scottish Mortgage Investment | GENTING SG vs. AOYAMA TRADING | GENTING SG vs. WisdomTree Investments | GENTING SG vs. CDL INVESTMENT |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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