Correlation Between Yuexiu Transport and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and DICKER DATA 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 DICKER DATA 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 DICKER DATA LTD, you can compare the effects of market volatilities on Yuexiu Transport and DICKER DATA 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 DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and DICKER DATA.
Diversification Opportunities for Yuexiu Transport and DICKER DATA
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and DICKER is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA 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 DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and DICKER DATA go up and down completely randomly.
Pair Corralation between Yuexiu Transport and DICKER DATA
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.76 times more return on investment than DICKER DATA. However, Yuexiu Transport is 1.76 times more volatile than DICKER DATA LTD. It trades about 0.07 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about 0.0 per unit of risk. If you would invest 15.00 in Yuexiu Transport Infrastructure on October 28, 2024 and sell it today you would earn a total of 29.00 from holding Yuexiu Transport Infrastructure or generate 193.33% 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. DICKER DATA LTD
Performance |
| Timeline |
| Yuexiu Transport Inf |
| DICKER DATA LTD |
Yuexiu Transport and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and DICKER DATA
The main advantage of trading using opposite Yuexiu Transport and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA's long position.| Yuexiu Transport vs. Getlink SE | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Arcosa Inc | Yuexiu Transport vs. Superior Plus Corp |
| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. Esprinet SpA | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. FORTEC Elektronik AG |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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