Correlation Between Yuexiu Transport and Sandstorm Gold
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Sandstorm Gold 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 Sandstorm Gold 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 Sandstorm Gold Ltd, you can compare the effects of market volatilities on Yuexiu Transport and Sandstorm Gold 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 Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Sandstorm Gold.
Diversification Opportunities for Yuexiu Transport and Sandstorm Gold
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuexiu and Sandstorm is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold 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 Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Sandstorm Gold go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Sandstorm Gold
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.44 times more return on investment than Sandstorm Gold. However, Yuexiu Transport is 1.44 times more volatile than Sandstorm Gold Ltd. It trades about 0.11 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about 0.09 per unit of risk. If you would invest 32.00 in Yuexiu Transport Infrastructure on August 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. Sandstorm Gold Ltd
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Sandstorm Gold |
Yuexiu Transport and Sandstorm Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Sandstorm Gold
The main advantage of trading using opposite Yuexiu Transport and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Sandstorm Gold 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold'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 |
| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Royal Gold | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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