Correlation Between Yuexiu Transport and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on Yuexiu Transport and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Proficient Auto.
Diversification Opportunities for Yuexiu Transport and Proficient Auto
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yuexiu and Proficient is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Proficient Auto go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Proficient Auto
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.87 times more return on investment than Proficient Auto. However, Yuexiu Transport is 1.87 times more volatile than Proficient Auto Logistics,. It trades about 0.23 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about 0.18 per unit of risk. If you would invest 45.00 in Yuexiu Transport Infrastructure on August 24, 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 | 95.65% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Proficient Auto Logistics,
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Proficient Auto Logi |
Yuexiu Transport and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Proficient Auto
The main advantage of trading using opposite Yuexiu Transport and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Yuexiu Transport vs. Verra Mobility Corp | Yuexiu Transport vs. HUMANA INC | Yuexiu Transport vs. Aquagold International | Yuexiu Transport vs. Barloworld Ltd ADR |
| Proficient Auto vs. Asure Software | Proficient Auto vs. Lindblad Expeditions Holdings | Proficient Auto vs. Cumulus Media Class | Proficient Auto vs. Ihuman Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |