Correlation Between Yuexiu Transport and GAMES OPERATORS
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and GAMES OPERATORS 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 GAMES OPERATORS 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 GAMES OPERATORS SA, you can compare the effects of market volatilities on Yuexiu Transport and GAMES OPERATORS 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 GAMES OPERATORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and GAMES OPERATORS.
Diversification Opportunities for Yuexiu Transport and GAMES OPERATORS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and GAMES is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and GAMES OPERATORS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMES OPERATORS SA 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 GAMES OPERATORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMES OPERATORS SA has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and GAMES OPERATORS go up and down completely randomly.
Pair Corralation between Yuexiu Transport and GAMES OPERATORS
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.07 times more return on investment than GAMES OPERATORS. However, Yuexiu Transport is 1.07 times more volatile than GAMES OPERATORS SA. It trades about -0.09 of its potential returns per unit of risk. GAMES OPERATORS SA is currently generating about -0.11 per unit of risk. If you would invest 47.00 in Yuexiu Transport Infrastructure on November 4, 2024 and sell it today you would lose (2.00) from holding Yuexiu Transport Infrastructure or give up 4.26% 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. GAMES OPERATORS SA
Performance |
| Timeline |
| Yuexiu Transport Inf |
| GAMES OPERATORS SA |
Yuexiu Transport and GAMES OPERATORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and GAMES OPERATORS
The main advantage of trading using opposite Yuexiu Transport and GAMES OPERATORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, GAMES OPERATORS 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 GAMES OPERATORS will offset losses from the drop in GAMES OPERATORS's long position.| Yuexiu Transport vs. Transurban Group | Yuexiu Transport vs. Getlink SE | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Zhejiang Expressway Co |
| GAMES OPERATORS vs. Yuexiu Transport Infrastructure | GAMES OPERATORS vs. NAKED WINES PLC | GAMES OPERATORS vs. INDO RAMA SYNTHETIC | GAMES OPERATORS vs. East Africa Metals |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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