Correlation Between YX Precious and Tex Cycle
Can any of the company-specific risk be diversified away by investing in both YX Precious and Tex Cycle 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 Tex Cycle 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 Tex Cycle Technology, you can compare the effects of market volatilities on YX Precious and Tex Cycle 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 Tex Cycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Tex Cycle.
Diversification Opportunities for YX Precious and Tex Cycle
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0250 and Tex is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Tex Cycle Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tex Cycle Technology 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 Tex Cycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tex Cycle Technology has no effect on the direction of YX Precious i.e., YX Precious and Tex Cycle go up and down completely randomly.
Pair Corralation between YX Precious and Tex Cycle
Assuming the 90 days trading horizon YX Precious Metals is expected to generate 1.84 times more return on investment than Tex Cycle. However, YX Precious is 1.84 times more volatile than Tex Cycle Technology. It trades about 0.01 of its potential returns per unit of risk. Tex Cycle Technology is currently generating about -0.26 per unit of risk. If you would invest 24.00 in YX Precious Metals on October 25, 2024 and sell it today you would earn a total of 0.00 from holding YX Precious Metals 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 |
YX Precious Metals vs. Tex Cycle Technology
Performance |
| Timeline |
| YX Precious Metals |
| Tex Cycle Technology |
YX Precious and Tex Cycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Tex Cycle
The main advantage of trading using opposite YX Precious and Tex Cycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Tex Cycle 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 Tex Cycle will offset losses from the drop in Tex Cycle's long position.| YX Precious vs. Kawan Food Bhd | YX Precious vs. Leader Steel Holdings | YX Precious vs. Lysaght Galvanized Steel | YX Precious vs. K One Technology Bhd |
| Tex Cycle vs. Cloudpoint Technology Berhad | Tex Cycle vs. Computer Forms Bhd | Tex Cycle vs. Senheng New Retail | Tex Cycle vs. Rubberex M |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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