Correlation Between Yuexiu Transport and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Comstock Holding 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 Comstock Holding 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 Comstock Holding Companies, you can compare the effects of market volatilities on Yuexiu Transport and Comstock Holding 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 Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Comstock Holding.
Diversification Opportunities for Yuexiu Transport and Comstock Holding
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yuexiu and Comstock is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com 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 Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Comstock Holding go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Comstock Holding
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.51 times more return on investment than Comstock Holding. However, Yuexiu Transport Infrastructure is 1.95 times less risky than Comstock Holding. It trades about -0.02 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.06 per unit of risk. If you would invest 47.00 in Yuexiu Transport Infrastructure on October 11, 2024 and sell it today you would lose (1.00) from holding Yuexiu Transport Infrastructure or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Comstock Holding Companies
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Comstock Holding Com |
Yuexiu Transport and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Comstock Holding
The main advantage of trading using opposite Yuexiu Transport and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.| Yuexiu Transport vs. INTERSHOP Communications Aktiengesellschaft | Yuexiu Transport vs. ecotel communication ag | Yuexiu Transport vs. United Airlines Holdings | Yuexiu Transport vs. THAI BEVERAGE |
| Comstock Holding vs. Nishi Nippon Railroad Co | Comstock Holding vs. Yuexiu Transport Infrastructure | Comstock Holding vs. Nordic Semiconductor ASA | Comstock Holding vs. UNITED UTILITIES GR |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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