Correlation Between ATRESMEDIA and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and Yuexiu Transport 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 ATRESMEDIA and Yuexiu Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on ATRESMEDIA 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 ATRESMEDIA with a short position of Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Yuexiu Transport.
Diversification Opportunities for ATRESMEDIA and Yuexiu Transport
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATRESMEDIA and Yuexiu is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA i.e., ATRESMEDIA and Yuexiu Transport go up and down completely randomly.
Pair Corralation between ATRESMEDIA and Yuexiu Transport
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 0.55 times more return on investment than Yuexiu Transport. However, ATRESMEDIA is 1.83 times less risky than Yuexiu Transport. It trades about 0.1 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.03 per unit of risk. If you would invest 414.00 in ATRESMEDIA on November 7, 2024 and sell it today you would earn a total of 33.00 from holding ATRESMEDIA or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| ATRESMEDIA |
| Yuexiu Transport Inf |
ATRESMEDIA and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and Yuexiu Transport
The main advantage of trading using opposite ATRESMEDIA and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA 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.| ATRESMEDIA vs. Mitsubishi Gas Chemical | ATRESMEDIA vs. TRI CHEMICAL LABORATINC | ATRESMEDIA vs. Sanyo Chemical Industries | ATRESMEDIA vs. Aedas Homes SA |
| Yuexiu Transport vs. UNITED RENTALS | Yuexiu Transport vs. CeoTronics AG | Yuexiu Transport vs. Global Ship Lease | Yuexiu Transport vs. Lendlease 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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