Correlation Between MClean Technologies and YX Precious
Can any of the company-specific risk be diversified away by investing in both MClean Technologies and YX Precious 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 MClean Technologies and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MClean Technologies Bhd and YX Precious Metals, you can compare the effects of market volatilities on MClean Technologies and YX Precious 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 MClean Technologies with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of MClean Technologies and YX Precious.
Diversification Opportunities for MClean Technologies and YX Precious
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MClean and 0250 is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding MClean Technologies Bhd and YX Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YX Precious Metals and MClean Technologies 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 MClean Technologies Bhd are associated (or correlated) with YX Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YX Precious Metals has no effect on the direction of MClean Technologies i.e., MClean Technologies and YX Precious go up and down completely randomly.
Pair Corralation between MClean Technologies and YX Precious
Assuming the 90 days trading horizon MClean Technologies Bhd is expected to generate 2.3 times more return on investment than YX Precious. However, MClean Technologies is 2.3 times more volatile than YX Precious Metals. It trades about 0.02 of its potential returns per unit of risk. YX Precious Metals is currently generating about -0.06 per unit of risk. If you would invest 28.00 in MClean Technologies Bhd on October 31, 2024 and sell it today you would earn a total of 0.00 from holding MClean Technologies Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MClean Technologies Bhd vs. YX Precious Metals
Performance |
| Timeline |
| MClean Technologies Bhd |
| YX Precious Metals |
MClean Technologies and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MClean Technologies and YX Precious
The main advantage of trading using opposite MClean Technologies and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MClean Technologies position performs unexpectedly, YX Precious 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 YX Precious will offset losses from the drop in YX Precious' long position.| MClean Technologies vs. Alliance Financial Group | MClean Technologies vs. Oriental Food Industries | MClean Technologies vs. Farm Price Holdings | MClean Technologies vs. Leader Steel Holdings |
| YX Precious vs. Kluang Rubber | YX Precious vs. Eonmetall Group Bhd | YX Precious vs. Sungei Bagan Rubber | YX Precious vs. PIE Industrial Bhd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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