Correlation Between Yuexiu Transport and Assurant
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Assurant 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 Assurant 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 Assurant, you can compare the effects of market volatilities on Yuexiu Transport and Assurant 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 Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Assurant.
Diversification Opportunities for Yuexiu Transport and Assurant
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yuexiu and Assurant is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant 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 Assurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assurant has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Assurant go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Assurant
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.91 times more return on investment than Assurant. However, Yuexiu Transport is 1.91 times more volatile than Assurant. It trades about 0.09 of its potential returns per unit of risk. Assurant is currently generating about 0.1 per unit of risk. If you would invest 19.00 in Yuexiu Transport Infrastructure on August 31, 2024 and sell it today you would earn a total of 39.00 from holding Yuexiu Transport Infrastructure or generate 205.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Assurant
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Assurant |
Yuexiu Transport and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Assurant
The main advantage of trading using opposite Yuexiu Transport and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Assurant 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 Assurant will offset losses from the drop in Assurant's long position.| Yuexiu Transport vs. Verra Mobility Corp | Yuexiu Transport vs. HUMANA INC | Yuexiu Transport vs. SCOR PK | Yuexiu Transport vs. Aquagold International |
| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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