Correlation Between Yuexiu Transport and Platinum Investment
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Platinum Investment 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 Platinum Investment 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 Platinum Investment Management, you can compare the effects of market volatilities on Yuexiu Transport and Platinum Investment 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 Platinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Platinum Investment.
Diversification Opportunities for Yuexiu Transport and Platinum Investment
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yuexiu and Platinum is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Investment 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 Platinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Investment has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Platinum Investment go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Platinum Investment
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.49 times more return on investment than Platinum Investment. However, Yuexiu Transport is 1.49 times more volatile than Platinum Investment Management. It trades about 0.07 of its potential returns per unit of risk. Platinum Investment Management is currently generating about -0.01 per unit of risk. If you would invest 14.00 in Yuexiu Transport Infrastructure on October 13, 2024 and sell it today you would earn a total of 32.00 from holding Yuexiu Transport Infrastructure or generate 228.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Platinum Investment Management
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Platinum Investment |
Yuexiu Transport and Platinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Platinum Investment
The main advantage of trading using opposite Yuexiu Transport and Platinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Platinum Investment 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 Platinum Investment will offset losses from the drop in Platinum Investment's long position.| Yuexiu Transport vs. KINGBOARD CHEMICAL | Yuexiu Transport vs. THRACE PLASTICS | Yuexiu Transport vs. TIANDE CHEMICAL | Yuexiu Transport vs. TRI CHEMICAL LABORATINC |
| Platinum Investment vs. Cairo Communication SpA | Platinum Investment vs. T Mobile | Platinum Investment vs. GEELY AUTOMOBILE | Platinum Investment vs. Yuexiu Transport Infrastructure |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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