Correlation Between YX Precious and Supercomnet Technologies
Can any of the company-specific risk be diversified away by investing in both YX Precious and Supercomnet Technologies 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 YX Precious and Supercomnet Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YX Precious Metals and Supercomnet Technologies Bhd, you can compare the effects of market volatilities on YX Precious and Supercomnet Technologies 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 YX Precious with a short position of Supercomnet Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Supercomnet Technologies.
Diversification Opportunities for YX Precious and Supercomnet Technologies
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0250 and Supercomnet is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Supercomnet Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercomnet Technologies and YX Precious 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 YX Precious Metals are associated (or correlated) with Supercomnet Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercomnet Technologies has no effect on the direction of YX Precious i.e., YX Precious and Supercomnet Technologies go up and down completely randomly.
Pair Corralation between YX Precious and Supercomnet Technologies
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Supercomnet Technologies. In addition to that, YX Precious Metals is as risky as Supercomnet Technologies. It trades about -0.08 of its total potential returns per unit of risk. Supercomnet Technologies Bhd is currently generating about -0.03 per unit of volatility. If you would invest 127.00 in Supercomnet Technologies Bhd on September 5, 2024 and sell it today you would lose (2.00) from holding Supercomnet Technologies Bhd or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
YX Precious Metals vs. Supercomnet Technologies Bhd
Performance |
| Timeline |
| YX Precious Metals |
| Supercomnet Technologies |
YX Precious and Supercomnet Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Supercomnet Technologies
The main advantage of trading using opposite YX Precious and Supercomnet Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Supercomnet Technologies 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 Supercomnet Technologies will offset losses from the drop in Supercomnet Technologies' long position.| YX Precious vs. Malayan Banking Bhd | YX Precious vs. Public Bank Bhd | YX Precious vs. Petronas Chemicals Group | YX Precious vs. Tenaga Nasional Bhd |
| Supercomnet Technologies vs. Sungei Bagan Rubber | Supercomnet Technologies vs. Aurelius Technologies Bhd | Supercomnet Technologies vs. EA Technique M | Supercomnet Technologies vs. Duopharma Biotech 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance |