Correlation Between Yuexiu Transport and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Yuexiu Transport and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Jacquet Metal.
Diversification Opportunities for Yuexiu Transport and Jacquet Metal
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yuexiu and Jacquet is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Jacquet Metal go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Jacquet Metal
Assuming the 90 days horizon Yuexiu Transport is expected to generate 1.85 times less return on investment than Jacquet Metal. But when comparing it to its historical volatility, Yuexiu Transport Infrastructure is 2.6 times less risky than Jacquet Metal. It trades about 0.31 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,548 in Jacquet Metal Service on September 23, 2024 and sell it today you would earn a total of 132.00 from holding Jacquet Metal Service or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Jacquet Metal Service
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Jacquet Metal Service |
Yuexiu Transport and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Jacquet Metal
The main advantage of trading using opposite Yuexiu Transport and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Yuexiu Transport vs. Transurban Group | Yuexiu Transport vs. Getlink SE | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Zhejiang Expressway Co |
| Jacquet Metal vs. Nucor | Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Steel Dynamics |
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
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |