Correlation Between AES and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both AES 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 AES and Yuexiu Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The AES and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on AES 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 AES with a short position of Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of AES and Yuexiu Transport.
Diversification Opportunities for AES and Yuexiu Transport
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AES and Yuexiu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The AES 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 AES 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 The AES 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 AES i.e., AES and Yuexiu Transport go up and down completely randomly.
Pair Corralation between AES and Yuexiu Transport
Assuming the 90 days horizon The AES is expected to generate 1.51 times more return on investment than Yuexiu Transport. However, AES is 1.51 times more volatile than Yuexiu Transport Infrastructure. It trades about 0.62 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.4 per unit of risk. If you would invest 1,519 in The AES on February 21, 2024 and sell it today you would earn a total of 430.00 from holding The AES or generate 28.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
The AES vs. Yuexiu Transport Infrastructur
Performance |
Timeline |
AES |
Yuexiu Transport Inf |
AES and Yuexiu Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AES and Yuexiu Transport
The main advantage of trading using opposite AES and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AES 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.AES vs. CITIUS RESOURCES LS 005 | AES vs. Superior Plus Corp | AES vs. NMI Holdings | AES vs. Origin Agritech |
Yuexiu Transport vs. CITIUS RESOURCES LS 005 | Yuexiu Transport vs. Superior Plus Corp | Yuexiu Transport vs. NMI Holdings | Yuexiu Transport vs. SIVERS SEMICONDUCTORS AB |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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