Correlation Between Yuexiu Transport and Aluminumof China
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Aluminumof China 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 Aluminumof China 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 Aluminum of, you can compare the effects of market volatilities on Yuexiu Transport and Aluminumof China 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 Aluminumof China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Aluminumof China.
Diversification Opportunities for Yuexiu Transport and Aluminumof China
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Aluminumof is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Aluminum of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminumof China 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 Aluminumof China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminumof China has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Aluminumof China go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Aluminumof China
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.32 times more return on investment than Aluminumof China. However, Yuexiu Transport Infrastructure is 3.08 times less risky than Aluminumof China. It trades about 0.32 of its potential returns per unit of risk. Aluminum of is currently generating about -0.19 per unit of risk. If you would invest 43.00 in Yuexiu Transport Infrastructure on September 24, 2024 and sell it today you would earn a total of 2.00 from holding Yuexiu Transport Infrastructure or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Aluminum of
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Aluminumof China |
Yuexiu Transport and Aluminumof China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Aluminumof China
The main advantage of trading using opposite Yuexiu Transport and Aluminumof China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Aluminumof China 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 Aluminumof China will offset losses from the drop in Aluminumof China's long position.| Yuexiu Transport vs. Transurban Group | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Arcosa Inc |
| Aluminumof China vs. Norsk Hydro ASA | Aluminumof China vs. Norsk Hydro ASA | Aluminumof China vs. Alcoa Corp | Aluminumof China vs. AMAG Austria Metall |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |