Correlation Between Yuexiu Transport and AMAG Austria

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and AMAG Austria 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 AMAG Austria 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 AMAG Austria Metall, you can compare the effects of market volatilities on Yuexiu Transport and AMAG Austria 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 AMAG Austria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and AMAG Austria.

Diversification Opportunities for Yuexiu Transport and AMAG Austria

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Yuexiu and AMAG is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and AMAG Austria Metall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG Austria Metall 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 AMAG Austria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG Austria Metall has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and AMAG Austria go up and down completely randomly.

Pair Corralation between Yuexiu Transport and AMAG Austria

Assuming the 90 days horizon Yuexiu Transport is expected to generate 1.1 times less return on investment than AMAG Austria. In addition to that, Yuexiu Transport is 1.66 times more volatile than AMAG Austria Metall. It trades about 0.04 of its total potential returns per unit of risk. AMAG Austria Metall is currently generating about 0.07 per unit of volatility. If you would invest  2,310  in AMAG Austria Metall on October 30, 2024 and sell it today you would earn a total of  70.00  from holding AMAG Austria Metall or generate 3.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Yuexiu Transport Infrastructur  vs.  AMAG Austria Metall

 Performance 
       Timeline  
Yuexiu Transport Inf 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Yuexiu Transport Infrastructure are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Yuexiu Transport reported solid returns over the last few months and may actually be approaching a breakup point.
AMAG Austria Metall 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AMAG Austria Metall has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AMAG Austria is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Yuexiu Transport and AMAG Austria Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Yuexiu Transport and AMAG Austria

The main advantage of trading using opposite Yuexiu Transport and AMAG Austria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, AMAG Austria 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 AMAG Austria will offset losses from the drop in AMAG Austria's long position.
The idea behind Yuexiu Transport Infrastructure and AMAG Austria Metall pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Stocks Directory module to find actively traded stocks across global markets.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like