Correlation Between Yuexiu Transport and Ameritrans Capital
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Ameritrans Capital 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 Ameritrans Capital 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 Ameritrans Capital Corp, you can compare the effects of market volatilities on Yuexiu Transport and Ameritrans Capital 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 Ameritrans Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Ameritrans Capital.
Diversification Opportunities for Yuexiu Transport and Ameritrans Capital
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Ameritrans is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Ameritrans Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrans Capital Corp 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 Ameritrans Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrans Capital Corp has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Ameritrans Capital go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Ameritrans Capital
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.67 times more return on investment than Ameritrans Capital. However, Yuexiu Transport Infrastructure is 1.49 times less risky than Ameritrans Capital. It trades about 0.1 of its potential returns per unit of risk. Ameritrans Capital Corp is currently generating about -0.04 per unit of risk. If you would invest 18.00 in Yuexiu Transport Infrastructure on November 2, 2024 and sell it today you would earn a total of 40.00 from holding Yuexiu Transport Infrastructure or generate 222.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Ameritrans Capital Corp
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Ameritrans Capital Corp |
Yuexiu Transport and Ameritrans Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Ameritrans Capital
The main advantage of trading using opposite Yuexiu Transport and Ameritrans Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Ameritrans Capital 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 Ameritrans Capital will offset losses from the drop in Ameritrans Capital's long position.| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility Corp |
| Ameritrans Capital vs. LG Display Co | Ameritrans Capital vs. Warner Music Group | Ameritrans Capital vs. Academy Sports Outdoors | Ameritrans Capital vs. Marine Products |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |