Correlation Between Yuexiu Transport and Hitachi Construction
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Hitachi Construction 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 Hitachi Construction 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 Hitachi Construction Machinery, you can compare the effects of market volatilities on Yuexiu Transport and Hitachi Construction 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 Hitachi Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Hitachi Construction.
Diversification Opportunities for Yuexiu Transport and Hitachi Construction
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yuexiu and Hitachi is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Hitachi Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitachi Construction 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 Hitachi Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitachi Construction has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Hitachi Construction go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Hitachi Construction
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to under-perform the Hitachi Construction. In addition to that, Yuexiu Transport is 1.78 times more volatile than Hitachi Construction Machinery. It trades about -0.14 of its total potential returns per unit of risk. Hitachi Construction Machinery is currently generating about 0.16 per unit of volatility. If you would invest 2,080 in Hitachi Construction Machinery on October 25, 2024 and sell it today you would earn a total of 80.00 from holding Hitachi Construction Machinery or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Hitachi Construction Machinery
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Hitachi Construction |
Yuexiu Transport and Hitachi Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Hitachi Construction
The main advantage of trading using opposite Yuexiu Transport and Hitachi Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Hitachi Construction 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 Hitachi Construction will offset losses from the drop in Hitachi Construction's long position.| Yuexiu Transport vs. Universal Health Realty | Yuexiu Transport vs. Phibro Animal Health | Yuexiu Transport vs. CLOVER HEALTH INV | Yuexiu Transport vs. MPH Health Care |
| Hitachi Construction vs. TT Electronics PLC | Hitachi Construction vs. Thai Beverage Public | Hitachi Construction vs. VIRGIN WINES UK | Hitachi Construction vs. VIVA WINE GROUP |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| 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 | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |