Correlation Between YX Precious and Kluang Rubber
Can any of the company-specific risk be diversified away by investing in both YX Precious and Kluang Rubber 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 Kluang Rubber 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 Kluang Rubber, you can compare the effects of market volatilities on YX Precious and Kluang Rubber 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 Kluang Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Kluang Rubber.
Diversification Opportunities for YX Precious and Kluang Rubber
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0250 and Kluang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Kluang Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kluang Rubber 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 Kluang Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kluang Rubber has no effect on the direction of YX Precious i.e., YX Precious and Kluang Rubber go up and down completely randomly.
Pair Corralation between YX Precious and Kluang Rubber
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Kluang Rubber. In addition to that, YX Precious is 1.77 times more volatile than Kluang Rubber. It trades about -0.05 of its total potential returns per unit of risk. Kluang Rubber is currently generating about -0.02 per unit of volatility. If you would invest 587.00 in Kluang Rubber on November 2, 2024 and sell it today you would lose (17.00) from holding Kluang Rubber or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.03% |
| Values | Daily Returns |
YX Precious Metals vs. Kluang Rubber
Performance |
| Timeline |
| YX Precious Metals |
| Kluang Rubber |
YX Precious and Kluang Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Kluang Rubber
The main advantage of trading using opposite YX Precious and Kluang Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Kluang Rubber 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 Kluang Rubber will offset losses from the drop in Kluang Rubber's long position.| YX Precious vs. Supercomnet Technologies Bhd | YX Precious vs. Sunzen Biotech Bhd | YX Precious vs. Berjaya Food Bhd | YX Precious vs. Cosmos Technology International |
| Kluang Rubber vs. Farm Price Holdings | Kluang Rubber vs. Globetronics Tech Bhd | Kluang Rubber vs. Cloudpoint Technology Berhad | Kluang Rubber vs. MI Technovation 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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