Correlation Between Yuexiu Transport and National Storage

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and National Storage 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 National Storage 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 National Storage REIT, you can compare the effects of market volatilities on Yuexiu Transport and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and National Storage.

Diversification Opportunities for Yuexiu Transport and National Storage

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between Yuexiu and National is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and National Storage REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage REIT 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage REIT has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and National Storage go up and down completely randomly.

Pair Corralation between Yuexiu Transport and National Storage

If you would invest  58.00  in Yuexiu Transport Infrastructure on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Yuexiu Transport Infrastructure or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Yuexiu Transport Infrastructur  vs.  National Storage REIT

 Performance 
       Timeline  
Yuexiu Transport Inf 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Yuexiu Transport Infrastructure are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Yuexiu Transport reported solid returns over the last few months and may actually be approaching a breakup point.
National Storage REIT 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days National Storage REIT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, National Storage is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Yuexiu Transport and National Storage Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Yuexiu Transport and National Storage

The main advantage of trading using opposite Yuexiu Transport and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage's long position.
The idea behind Yuexiu Transport Infrastructure and National Storage REIT 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.
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Stocks Directory
Find actively traded stocks across global markets
Commodity Directory
Find actively traded commodities issued by global exchanges
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Bonds Directory
Find actively traded corporate debentures issued by US companies
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance