Correlation Between Yuexiu Transport and PENN Entertainment
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and PENN Entertainment 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 PENN Entertainment 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 PENN Entertainment, you can compare the effects of market volatilities on Yuexiu Transport and PENN Entertainment 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 PENN Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and PENN Entertainment.
Diversification Opportunities for Yuexiu Transport and PENN Entertainment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yuexiu and PENN is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and PENN Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment 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 PENN Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN Entertainment has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and PENN Entertainment go up and down completely randomly.
Pair Corralation between Yuexiu Transport and PENN Entertainment
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.62 times more return on investment than PENN Entertainment. However, Yuexiu Transport Infrastructure is 1.62 times less risky than PENN Entertainment. It trades about 0.08 of its potential returns per unit of risk. PENN Entertainment is currently generating about -0.07 per unit of risk. If you would invest 44.00 in Yuexiu Transport Infrastructure on October 12, 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 Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. PENN Entertainment
Performance |
| Timeline |
| Yuexiu Transport Inf |
| PENN Entertainment |
Yuexiu Transport and PENN Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and PENN Entertainment
The main advantage of trading using opposite Yuexiu Transport and PENN Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, PENN Entertainment 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 PENN Entertainment will offset losses from the drop in PENN Entertainment's long position.| Yuexiu Transport vs. Coor Service Management | Yuexiu Transport vs. ecotel communication ag | Yuexiu Transport vs. CeoTronics AG | Yuexiu Transport vs. Jupiter Fund Management |
| PENN Entertainment vs. Ross Stores | PENN Entertainment vs. Costco Wholesale Corp | PENN Entertainment vs. H2O Retailing | PENN Entertainment 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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