Correlation Between Hudson Pacific and China Yuchai
Can any of the company-specific risk be diversified away by investing in both Hudson Pacific and China Yuchai 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 Hudson Pacific and China Yuchai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Pacific Properties and China Yuchai International, you can compare the effects of market volatilities on Hudson Pacific and China Yuchai 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 Hudson Pacific with a short position of China Yuchai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Pacific and China Yuchai.
Diversification Opportunities for Hudson Pacific and China Yuchai
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hudson and China is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Pacific Properties and China Yuchai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Yuchai Interna and Hudson Pacific 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 Hudson Pacific Properties are associated (or correlated) with China Yuchai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Yuchai Interna has no effect on the direction of Hudson Pacific i.e., Hudson Pacific and China Yuchai go up and down completely randomly.
Pair Corralation between Hudson Pacific and China Yuchai
Considering the 90-day investment horizon Hudson Pacific Properties is expected to under-perform the China Yuchai. But the stock apears to be less risky and, when comparing its historical volatility, Hudson Pacific Properties is 1.03 times less risky than China Yuchai. The stock trades about -0.19 of its potential returns per unit of risk. The China Yuchai International is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,517 in China Yuchai International on September 9, 2025 and sell it today you would lose (42.00) from holding China Yuchai International or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudson Pacific Properties vs. China Yuchai International
Performance |
| Timeline |
| Hudson Pacific Properties |
| China Yuchai Interna |
Hudson Pacific and China Yuchai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Pacific and China Yuchai
The main advantage of trading using opposite Hudson Pacific and China Yuchai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Pacific position performs unexpectedly, China Yuchai 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 China Yuchai will offset losses from the drop in China Yuchai's long position.| Hudson Pacific vs. City Office | Hudson Pacific vs. Piedmont Office Realty | Hudson Pacific vs. Eerly Govt Ppty | Hudson Pacific vs. CBL Associates Properties |
| China Yuchai vs. Tennant Company | China Yuchai vs. Gorman Rupp | China Yuchai vs. Babcock Wilcox Enterprises | China Yuchai vs. Compass Diversified Holdings |
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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