Correlation Between Yuexiu Transport and SBI Holdings
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and SBI Holdings 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 SBI Holdings 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 SBI Holdings, you can compare the effects of market volatilities on Yuexiu Transport and SBI Holdings 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 SBI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and SBI Holdings.
Diversification Opportunities for Yuexiu Transport and SBI Holdings
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yuexiu and SBI is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and SBI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Holdings 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 SBI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Holdings has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and SBI Holdings go up and down completely randomly.
Pair Corralation between Yuexiu Transport and SBI Holdings
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to under-perform the SBI Holdings. In addition to that, Yuexiu Transport is 1.04 times more volatile than SBI Holdings. It trades about -0.09 of its total potential returns per unit of risk. SBI Holdings is currently generating about 0.24 per unit of volatility. If you would invest 2,480 in SBI Holdings on November 4, 2024 and sell it today you would earn a total of 260.00 from holding SBI Holdings or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. SBI Holdings
Performance |
| Timeline |
| Yuexiu Transport Inf |
| SBI Holdings |
Yuexiu Transport and SBI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and SBI Holdings
The main advantage of trading using opposite Yuexiu Transport and SBI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, SBI Holdings 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 SBI Holdings will offset losses from the drop in SBI Holdings' long position.| Yuexiu Transport vs. Transurban Group | Yuexiu Transport vs. Getlink SE | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Zhejiang Expressway Co |
| SBI Holdings vs. SIVERS SEMICONDUCTORS AB | SBI Holdings vs. NorAm Drilling AS | SBI Holdings vs. Volkswagen AG | SBI Holdings vs. Darden Restaurants |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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