Correlation Between Yuexiu Transport and Media
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on Yuexiu Transport and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Media.
Diversification Opportunities for Yuexiu Transport and Media
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Media is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Media go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Media
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.52 times more return on investment than Media. However, Yuexiu Transport Infrastructure is 1.93 times less risky than Media. It trades about 0.04 of its potential returns per unit of risk. Media and Games is currently generating about -0.06 per unit of risk. If you would invest 44.00 in Yuexiu Transport Infrastructure on October 30, 2024 and sell it today you would earn a total of 1.00 from holding Yuexiu Transport Infrastructure or generate 2.27% 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. Media and Games
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Media and Games |
Yuexiu Transport and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Media
The main advantage of trading using opposite Yuexiu Transport and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Media 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 Media will offset losses from the drop in Media's long position.| Yuexiu Transport vs. ALERION CLEANPOWER | Yuexiu Transport vs. Carnegie Clean Energy | Yuexiu Transport vs. Q2M Managementberatung AG | Yuexiu Transport vs. Cleanaway Waste Management |
| Media vs. ALTAIR RES INC | Media vs. Air Transport Services | Media vs. Westinghouse Air Brake | Media vs. SOEDER SPORTFISKE AB |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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