Correlation Between Yuexiu Transport and Kerry Logistics
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Kerry Logistics 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 Kerry Logistics 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 Kerry Logistics Network, you can compare the effects of market volatilities on Yuexiu Transport and Kerry Logistics 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 Kerry Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Kerry Logistics.
Diversification Opportunities for Yuexiu Transport and Kerry Logistics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yuexiu and Kerry is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Kerry Logistics Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerry Logistics Network 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 Kerry Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerry Logistics Network has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Kerry Logistics go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Kerry Logistics
If you would invest 100.00 in Kerry Logistics Network on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Kerry Logistics Network or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Kerry Logistics Network
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Kerry Logistics Network |
Yuexiu Transport and Kerry Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Kerry Logistics
The main advantage of trading using opposite Yuexiu Transport and Kerry Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Kerry Logistics 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 Kerry Logistics will offset losses from the drop in Kerry Logistics' 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 |
| Kerry Logistics vs. Centessa Pharmaceuticals PLC | Kerry Logistics vs. Coty Inc | Kerry Logistics vs. Inter Parfums | Kerry Logistics vs. Weyco Group |
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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