Correlation Between JABHOL and Yuexiu Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between JABHOL 22 23 NOV 30 and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on JABHOL and Yuexiu Transport 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 JABHOL with a short position of Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of JABHOL and Yuexiu Transport.
Diversification Opportunities for JABHOL and Yuexiu Transport
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JABHOL and Yuexiu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding JABHOL 22 23 NOV 30 and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf and JABHOL 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 JABHOL 22 23 NOV 30 are associated (or correlated) with Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of JABHOL i.e., JABHOL and Yuexiu Transport go up and down completely randomly.
Pair Corralation between JABHOL and Yuexiu Transport
Assuming the 90 days trading horizon JABHOL is expected to generate 15.32 times less return on investment than Yuexiu Transport. But when comparing it to its historical volatility, JABHOL 22 23 NOV 30 is 1.57 times less risky than Yuexiu Transport. It trades about 0.01 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Yuexiu Transport Infrastructure on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Yuexiu Transport Infrastructure or generate 190.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 10.32% |
| Values | Daily Returns |
JABHOL 22 23 NOV 30 vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| JABHOL 22 23 |
| Yuexiu Transport Inf |
JABHOL and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JABHOL and Yuexiu Transport
The main advantage of trading using opposite JABHOL and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JABHOL position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport's long position.The idea behind JABHOL 22 23 NOV 30 and Yuexiu Transport Infrastructure pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |