Correlation Between Yuexiu Transport and Aurora Technology
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Aurora Technology 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 Aurora Technology 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 Aurora Technology Acquisition, you can compare the effects of market volatilities on Yuexiu Transport and Aurora Technology 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 Aurora Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Aurora Technology.
Diversification Opportunities for Yuexiu Transport and Aurora Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuexiu and Aurora is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Aurora Technology Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Technology 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 Aurora Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Technology has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Aurora Technology go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Aurora Technology
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 25.24 times more return on investment than Aurora Technology. However, Yuexiu Transport is 25.24 times more volatile than Aurora Technology Acquisition. It trades about 0.11 of its potential returns per unit of risk. Aurora Technology Acquisition is currently generating about 0.19 per unit of risk. If you would invest 18.00 in Yuexiu Transport Infrastructure on September 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 | Flat |
| Strength | Insignificant |
| Accuracy | 7.8% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Aurora Technology Acquisition
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Aurora Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yuexiu Transport and Aurora Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Aurora Technology
The main advantage of trading using opposite Yuexiu Transport and Aurora Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Aurora Technology 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 Aurora Technology will offset losses from the drop in Aurora Technology'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 |
| Aurora Technology vs. Chipotle Mexican Grill | Aurora Technology vs. RCI Hospitality Holdings | Aurora Technology vs. Dennys Corp | Aurora Technology vs. Shake Shack |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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