Correlation Between Yuexiu Transport and Grand City
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Grand City 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 Grand City 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 Grand City Properties, you can compare the effects of market volatilities on Yuexiu Transport and Grand City 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 Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Grand City.
Diversification Opportunities for Yuexiu Transport and Grand City
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuexiu and Grand is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties 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 Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Grand City go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Grand City
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.89 times more return on investment than Grand City. However, Yuexiu Transport is 1.89 times more volatile than Grand City Properties. It trades about 0.07 of its potential returns per unit of risk. Grand City Properties is currently generating about 0.03 per unit of risk. If you would invest 13.00 in Yuexiu Transport Infrastructure on August 30, 2024 and sell it today you would earn a total of 30.00 from holding Yuexiu Transport Infrastructure or generate 230.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Grand City Properties
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Grand City Properties |
Yuexiu Transport and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Grand City
The main advantage of trading using opposite Yuexiu Transport and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| Yuexiu Transport vs. Superior Plus Corp | Yuexiu Transport vs. NMI Holdings | Yuexiu Transport vs. Origin Agritech | Yuexiu Transport vs. SIVERS SEMICONDUCTORS AB |
| Grand City vs. CAREER EDUCATION | Grand City vs. DEVRY EDUCATION GRP | Grand City vs. Vastned Retail NV | Grand City vs. Marie Brizard Wine |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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