Correlation Between Yuexiu Transport and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and BRAGG GAMING 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 BRAGG GAMING 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 BRAGG GAMING GRP, you can compare the effects of market volatilities on Yuexiu Transport and BRAGG GAMING 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 BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and BRAGG GAMING.
Diversification Opportunities for Yuexiu Transport and BRAGG GAMING
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuexiu and BRAGG is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP 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 BRAGG GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRAGG GAMING GRP has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and BRAGG GAMING go up and down completely randomly.
Pair Corralation between Yuexiu Transport and BRAGG GAMING
Assuming the 90 days horizon Yuexiu Transport is expected to generate 1.73 times less return on investment than BRAGG GAMING. But when comparing it to its historical volatility, Yuexiu Transport Infrastructure is 6.11 times less risky than BRAGG GAMING. It trades about 0.31 of its potential returns per unit of risk. BRAGG GAMING GRP is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 310.00 in BRAGG GAMING GRP on September 26, 2024 and sell it today you would earn a total of 20.00 from holding BRAGG GAMING GRP or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. BRAGG GAMING GRP
Performance |
| Timeline |
| Yuexiu Transport Inf |
| BRAGG GAMING GRP |
Yuexiu Transport and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and BRAGG GAMING
The main advantage of trading using opposite Yuexiu Transport and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, BRAGG GAMING 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 BRAGG GAMING will offset losses from the drop in BRAGG GAMING's long position.| Yuexiu Transport vs. Transurban Group | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Arcosa Inc |
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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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