Correlation Between Yuexiu Transport and Global Net
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Global Net 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 Global Net 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 Global Net Lease, you can compare the effects of market volatilities on Yuexiu Transport and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Global Net.
Diversification Opportunities for Yuexiu Transport and Global Net
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yuexiu and Global is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Global Net go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Global Net
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 2.99 times more return on investment than Global Net. However, Yuexiu Transport is 2.99 times more volatile than Global Net Lease. It trades about 0.11 of its potential returns per unit of risk. Global Net Lease is currently generating about 0.1 per unit of risk. If you would invest 32.00 in Yuexiu Transport Infrastructure on October 27, 2024 and sell it today you would earn a total of 26.00 from holding Yuexiu Transport Infrastructure or generate 81.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Global Net Lease
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Global Net Lease |
Yuexiu Transport and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Global Net
The main advantage of trading using opposite Yuexiu Transport and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net'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 |
| Global Net vs. Vita Coco | Global Net vs. Fernhill Beverage | Global Net vs. Willamette Valley Vineyards | Global Net vs. Iridium Communications |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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