Correlation Between Yuexiu Transport and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Thai Beverage 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 Thai Beverage 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 Thai Beverage Public, you can compare the effects of market volatilities on Yuexiu Transport and Thai Beverage 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 Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Thai Beverage.
Diversification Opportunities for Yuexiu Transport and Thai Beverage
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yuexiu and Thai is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Thai Beverage Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage Public 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 Thai Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Beverage Public has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Thai Beverage go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Thai Beverage
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.57 times more return on investment than Thai Beverage. However, Yuexiu Transport Infrastructure is 1.77 times less risky than Thai Beverage. It trades about 0.04 of its potential returns per unit of risk. Thai Beverage Public is currently generating about -0.08 per unit of risk. If you would invest 44.00 in Yuexiu Transport Infrastructure on November 1, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Thai Beverage Public
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Thai Beverage Public |
Yuexiu Transport and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Thai Beverage
The main advantage of trading using opposite Yuexiu Transport and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Thai Beverage 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 Thai Beverage will offset losses from the drop in Thai Beverage's long position.| Yuexiu Transport vs. LIFENET INSURANCE CO | Yuexiu Transport vs. Insurance Australia Group | Yuexiu Transport vs. Selective Insurance Group | Yuexiu Transport vs. Fukuyama Transporting Co |
| Thai Beverage vs. SEKISUI CHEMICAL | Thai Beverage vs. SIERRA METALS | Thai Beverage vs. PARKEN Sport Entertainment | Thai Beverage vs. DISTRICT METALS |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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