Correlation Between Yuexiu Transport and Vulcan Materials
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport and Vulcan Materials 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 Vulcan Materials 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 Vulcan Materials, you can compare the effects of market volatilities on Yuexiu Transport and Vulcan Materials 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 Vulcan Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Vulcan Materials.
Diversification Opportunities for Yuexiu Transport and Vulcan Materials
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yuexiu and Vulcan is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Vulcan Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vulcan Materials 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 Vulcan Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vulcan Materials has no effect on the direction of Yuexiu Transport i.e., Yuexiu Transport and Vulcan Materials go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Vulcan Materials
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 0.18 times more return on investment than Vulcan Materials. However, Yuexiu Transport Infrastructure is 5.71 times less risky than Vulcan Materials. It trades about 0.12 of its potential returns per unit of risk. Vulcan Materials is currently generating about -0.01 per unit of risk. If you would invest 57.00 in Yuexiu Transport Infrastructure on September 6, 2025 and sell it today you would earn a total of 1.00 from holding Yuexiu Transport Infrastructure or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Vulcan Materials
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Vulcan Materials |
Yuexiu Transport and Vulcan Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Vulcan Materials
The main advantage of trading using opposite Yuexiu Transport and Vulcan Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport position performs unexpectedly, Vulcan Materials 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 Vulcan Materials will offset losses from the drop in Vulcan Materials' long position.| Yuexiu Transport vs. Piedmont Office Realty | Yuexiu Transport vs. Net Lease Office | Yuexiu Transport vs. Orion Office Reit | Yuexiu Transport vs. Schweiter Technologies AG |
| Vulcan Materials vs. Cemex SAB de | Vulcan Materials vs. Sinosteel Luonai Materials | Vulcan Materials vs. Shandong Longquan Pipeline | Vulcan Materials vs. Prism Johnson Limited |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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