Correlation Between Yuexiu Transport and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and GREENX METALS 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 GREENX METALS 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 GREENX METALS LTD, you can compare the effects of market volatilities on Yuexiu Transport and GREENX METALS 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and GREENX METALS.
Diversification Opportunities for Yuexiu Transport and GREENX METALS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and GREENX is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and GREENX METALS go up and down completely randomly.
Pair Corralation between Yuexiu Transport and GREENX METALS
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.84 times more return on investment than GREENX METALS. However, Yuexiu Transport Infrastructure is 1.19 times less risky than GREENX METALS. It trades about 0.07 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about -0.02 per unit of risk. If you would invest 35.00 in Yuexiu Transport Infrastructure on September 23, 2024 and sell it today you would earn a total of 10.00 from holding Yuexiu Transport Infrastructure or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. GREENX METALS LTD
Performance |
| Timeline |
| Yuexiu Transport Inf |
| GREENX METALS LTD |
Yuexiu Transport and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and GREENX METALS
The main advantage of trading using opposite Yuexiu Transport and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| Yuexiu Transport vs. Transurban Group | Yuexiu Transport vs. Getlink SE | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Zhejiang Expressway Co |
| GREENX METALS vs. Shin Etsu Chemical Co | GREENX METALS vs. GALENA MINING LTD | GREENX METALS vs. Quaker Chemical | GREENX METALS vs. Silicon Motion Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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