Correlation Between Yuexiu Transport and GABY
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and GABY 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 GABY 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 GABY Inc, you can compare the effects of market volatilities on Yuexiu Transport and GABY 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 GABY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and GABY.
Diversification Opportunities for Yuexiu Transport and GABY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuexiu and GABY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and GABY Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GABY Inc 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 GABY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GABY Inc has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and GABY go up and down completely randomly.
Pair Corralation between Yuexiu Transport and GABY
Assuming the 90 days horizon Yuexiu Transport is expected to generate 8.58 times less return on investment than GABY. But when comparing it to its historical volatility, Yuexiu Transport Infrastructure is 9.35 times less risky than GABY. It trades about 0.09 of its potential returns per unit of risk. GABY Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.31 in GABY Inc on August 31, 2024 and sell it today you would lose (0.17) from holding GABY Inc or give up 54.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.12% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. GABY Inc
Performance |
| Timeline |
| Yuexiu Transport Inf |
| GABY Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yuexiu Transport and GABY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and GABY
The main advantage of trading using opposite Yuexiu Transport and GABY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, GABY 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 GABY will offset losses from the drop in GABY's long position.| Yuexiu Transport vs. Verra Mobility Corp | Yuexiu Transport vs. HUMANA INC | Yuexiu Transport vs. SCOR PK | Yuexiu Transport vs. Aquagold International |
| GABY vs. Nextplat Corp | GABY vs. Hudson Pacific Properties | GABY vs. Mativ Holdings | GABY vs. Amkor Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |