Correlation Between Yuexiu Transport and CBL Associates

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Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and CBL Associates 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 CBL Associates 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 CBL Associates Properties, you can compare the effects of market volatilities on Yuexiu Transport and CBL Associates 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 CBL Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and CBL Associates.

Diversification Opportunities for Yuexiu Transport and CBL Associates

0.7
  Correlation Coefficient

Poor diversification

The 3 months correlation between Yuexiu and CBL is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and CBL Associates Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBL Associates Properties 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 CBL Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBL Associates Properties has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and CBL Associates go up and down completely randomly.

Pair Corralation between Yuexiu Transport and CBL Associates

Assuming the 90 days horizon Yuexiu Transport is expected to generate 8.49 times less return on investment than CBL Associates. But when comparing it to its historical volatility, Yuexiu Transport Infrastructure is 7.53 times less risky than CBL Associates. It trades about 0.12 of its potential returns per unit of risk. CBL Associates Properties is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  3,113  in CBL Associates Properties on September 9, 2025 and sell it today you would earn a total of  461.00  from holding CBL Associates Properties or generate 14.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.46%
ValuesDaily Returns

Yuexiu Transport Infrastructur  vs.  CBL Associates Properties

 Performance 
       Timeline  
Yuexiu Transport Inf 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Yuexiu Transport Infrastructure are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Yuexiu Transport is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
CBL Associates Properties 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CBL Associates Properties are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile fundamental drivers, CBL Associates disclosed solid returns over the last few months and may actually be approaching a breakup point.

Yuexiu Transport and CBL Associates Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Yuexiu Transport and CBL Associates

The main advantage of trading using opposite Yuexiu Transport and CBL Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, CBL Associates 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 CBL Associates will offset losses from the drop in CBL Associates' long position.
The idea behind Yuexiu Transport Infrastructure and CBL Associates Properties 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.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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