Correlation Between Yuexiu Transport and Global Ship
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Global Ship 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 Global Ship 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 Global Ship Lease, you can compare the effects of market volatilities on Yuexiu Transport and Global Ship 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 Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Global Ship.
Diversification Opportunities for Yuexiu Transport and Global Ship
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Global is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease 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 Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Global Ship go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Global Ship
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to under-perform the Global Ship. In addition to that, Yuexiu Transport is 1.26 times more volatile than Global Ship Lease. It trades about -0.14 of its total potential returns per unit of risk. Global Ship Lease is currently generating about -0.05 per unit of volatility. If you would invest 2,104 in Global Ship Lease on October 25, 2024 and sell it today you would lose (46.00) from holding Global Ship Lease or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Global Ship Lease
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Global Ship Lease |
Yuexiu Transport and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Global Ship
The main advantage of trading using opposite Yuexiu Transport and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship'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 |
| Global Ship vs. Chengdu PUTIAN Telecommunications | Global Ship vs. Wayside Technology Group | Global Ship vs. Cairo Communication SpA | Global Ship vs. Spirent Communications plc |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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