Correlation Between YX Precious and Malaysian Resources
Can any of the company-specific risk be diversified away by investing in both YX Precious and Malaysian Resources 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 Malaysian Resources 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 Malaysian Resources, you can compare the effects of market volatilities on YX Precious and Malaysian Resources 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 Malaysian Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Malaysian Resources.
Diversification Opportunities for YX Precious and Malaysian Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0250 and Malaysian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Malaysian Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaysian Resources 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 Malaysian Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malaysian Resources has no effect on the direction of YX Precious i.e., YX Precious and Malaysian Resources go up and down completely randomly.
Pair Corralation between YX Precious and Malaysian Resources
If you would invest (100.00) in Malaysian Resources on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Malaysian Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
YX Precious Metals vs. Malaysian Resources
Performance |
| Timeline |
| YX Precious Metals |
| Malaysian Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
YX Precious and Malaysian Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Malaysian Resources
The main advantage of trading using opposite YX Precious and Malaysian Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Malaysian Resources 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 Malaysian Resources will offset losses from the drop in Malaysian Resources' long position.| YX Precious vs. Computer Forms Bhd | YX Precious vs. Apex Healthcare Bhd | YX Precious vs. Sunway Construction Group | YX Precious vs. Awanbiru Technology Bhd |
| Malaysian Resources vs. Sungei Bagan Rubber | Malaysian Resources vs. Diversified Gateway Solutions | Malaysian Resources vs. Kluang Rubber | Malaysian Resources vs. Binasat Communications 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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