Correlation Between Yuexiu Transport and Dominos Pizza
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Dominos Pizza 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 Dominos Pizza 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 Dominos Pizza Group, you can compare the effects of market volatilities on Yuexiu Transport and Dominos Pizza 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 Dominos Pizza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Dominos Pizza.
Diversification Opportunities for Yuexiu Transport and Dominos Pizza
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Dominos is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Dominos Pizza Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominos Pizza Group 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 Dominos Pizza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominos Pizza Group has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Dominos Pizza go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Dominos Pizza
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 5.35 times more return on investment than Dominos Pizza. However, Yuexiu Transport is 5.35 times more volatile than Dominos Pizza Group. It trades about 0.1 of its potential returns per unit of risk. Dominos Pizza Group is currently generating about 0.02 per unit of risk. If you would invest 45.00 in Yuexiu Transport Infrastructure on September 3, 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 | Very Weak |
| Accuracy | 39.2% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Dominos Pizza Group
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Dominos Pizza Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yuexiu Transport and Dominos Pizza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Dominos Pizza
The main advantage of trading using opposite Yuexiu Transport and Dominos Pizza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Dominos Pizza 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 Dominos Pizza will offset losses from the drop in Dominos Pizza'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 |
| Dominos Pizza vs. Hafnia Limited | Dominos Pizza vs. Nexstar Broadcasting Group | Dominos Pizza vs. Yuexiu Transport Infrastructure | Dominos Pizza vs. NH Foods Ltd |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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