Correlation Between Yuexiu Transport and Ihuman
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Ihuman 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 Ihuman 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 Ihuman Inc, you can compare the effects of market volatilities on Yuexiu Transport and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Ihuman.
Diversification Opportunities for Yuexiu Transport and Ihuman
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Ihuman is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Ihuman go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Ihuman
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 2.5 times more return on investment than Ihuman. However, Yuexiu Transport is 2.5 times more volatile than Ihuman Inc. It trades about 0.23 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.19 per unit of risk. If you would invest 45.00 in Yuexiu Transport Infrastructure on August 31, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Ihuman Inc
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Ihuman Inc |
Yuexiu Transport and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Ihuman
The main advantage of trading using opposite Yuexiu Transport and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Yuexiu Transport vs. Verra Mobility Corp | Yuexiu Transport vs. HUMANA INC | Yuexiu Transport vs. SCOR PK | Yuexiu Transport vs. Aquagold International |
| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |