Correlation Between YX Precious and Radiant Globaltech
Can any of the company-specific risk be diversified away by investing in both YX Precious and Radiant Globaltech 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 Radiant Globaltech 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 Radiant Globaltech Bhd, you can compare the effects of market volatilities on YX Precious and Radiant Globaltech 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 Radiant Globaltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Radiant Globaltech.
Diversification Opportunities for YX Precious and Radiant Globaltech
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 0250 and Radiant is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Radiant Globaltech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Globaltech Bhd 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 Radiant Globaltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Globaltech Bhd has no effect on the direction of YX Precious i.e., YX Precious and Radiant Globaltech go up and down completely randomly.
Pair Corralation between YX Precious and Radiant Globaltech
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Radiant Globaltech. But the stock apears to be less risky and, when comparing its historical volatility, YX Precious Metals is 1.37 times less risky than Radiant Globaltech. The stock trades about -0.1 of its potential returns per unit of risk. The Radiant Globaltech Bhd is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Radiant Globaltech Bhd on August 24, 2024 and sell it today you would lose (2.00) from holding Radiant Globaltech Bhd or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YX Precious Metals vs. Radiant Globaltech Bhd
Performance |
| Timeline |
| YX Precious Metals |
| Radiant Globaltech Bhd |
YX Precious and Radiant Globaltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Radiant Globaltech
The main advantage of trading using opposite YX Precious and Radiant Globaltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Radiant Globaltech 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 Radiant Globaltech will offset losses from the drop in Radiant Globaltech's long position.| YX Precious vs. Shangri La Hotels | YX Precious vs. Datasonic Group Bhd | YX Precious vs. RHB Bank Bhd | YX Precious vs. Kossan Rubber Industries |
| Radiant Globaltech vs. Choo Bee Metal | Radiant Globaltech vs. Lotte Chemical Titan | Radiant Globaltech vs. Impiana Hotels Bhd | Radiant Globaltech vs. Petronas Chemicals Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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