Correlation Between Yuexiu Transport and Stardust Power
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Stardust Power 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 Stardust Power 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 Stardust Power, you can compare the effects of market volatilities on Yuexiu Transport and Stardust Power 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 Stardust Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Stardust Power.
Diversification Opportunities for Yuexiu Transport and Stardust Power
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuexiu and Stardust is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Stardust Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stardust Power 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 Stardust Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stardust Power has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Stardust Power go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Stardust Power
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.71 times more return on investment than Stardust Power. However, Yuexiu Transport Infrastructure is 1.42 times less risky than Stardust Power. It trades about 0.23 of its potential returns per unit of risk. Stardust Power is currently generating about -0.16 per unit of risk. If you would invest 45.00 in Yuexiu Transport Infrastructure on September 1, 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 | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Stardust Power
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Stardust Power |
Yuexiu Transport and Stardust Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Stardust Power
The main advantage of trading using opposite Yuexiu Transport and Stardust Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Stardust Power 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 Stardust Power will offset losses from the drop in Stardust Power's long position.| Yuexiu Transport vs. Verra Mobility Corp | Yuexiu Transport vs. HUMANA INC | Yuexiu Transport vs. SCOR PK | Yuexiu Transport vs. Aquagold International |
| Stardust Power vs. Bloom Energy Corp | Stardust Power vs. Elong Power Holding | Stardust Power vs. Electrovaya Common Shares | Stardust Power vs. Enovix Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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