Correlation Between Yuexiu Transport and Banpu PCL
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Banpu PCL 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 Banpu PCL 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 Banpu PCL ADR, you can compare the effects of market volatilities on Yuexiu Transport and Banpu PCL 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 Banpu PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Banpu PCL.
Diversification Opportunities for Yuexiu Transport and Banpu PCL
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuexiu and Banpu is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Banpu PCL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu PCL ADR 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 Banpu PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu PCL ADR has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Banpu PCL go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Banpu PCL
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.33 times more return on investment than Banpu PCL. However, Yuexiu Transport Infrastructure is 3.05 times less risky than Banpu PCL. It trades about 0.09 of its potential returns per unit of risk. Banpu PCL ADR is currently generating about -0.13 per unit of risk. If you would invest 45.00 in Yuexiu Transport Infrastructure on September 15, 2024 and sell it today you would earn a total of 13.00 from holding Yuexiu Transport Infrastructure or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 46.83% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Banpu PCL ADR
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Banpu PCL ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yuexiu Transport and Banpu PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Banpu PCL
The main advantage of trading using opposite Yuexiu Transport and Banpu PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Banpu PCL 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 Banpu PCL will offset losses from the drop in Banpu PCL'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 |
| Banpu PCL vs. Coupang LLC | Banpu PCL vs. Delek Logistics Partners | Banpu PCL vs. Yuexiu Transport Infrastructure | Banpu PCL vs. The Gap, |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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