Correlation Between YX Precious and JAKS Resources
Can any of the company-specific risk be diversified away by investing in both YX Precious and JAKS 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 JAKS 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 JAKS Resources Bhd, you can compare the effects of market volatilities on YX Precious and JAKS 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 JAKS Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and JAKS Resources.
Diversification Opportunities for YX Precious and JAKS Resources
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between 0250 and JAKS is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and JAKS Resources Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAKS Resources 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 JAKS Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAKS Resources Bhd has no effect on the direction of YX Precious i.e., YX Precious and JAKS Resources go up and down completely randomly.
Pair Corralation between YX Precious and JAKS Resources
Assuming the 90 days trading horizon YX Precious Metals is expected to generate 0.48 times more return on investment than JAKS Resources. However, YX Precious Metals is 2.06 times less risky than JAKS Resources. It trades about 0.0 of its potential returns per unit of risk. JAKS Resources Bhd is currently generating about -0.02 per unit of risk. If you would invest 27.00 in YX Precious Metals on September 4, 2024 and sell it today you would lose (2.00) from holding YX Precious Metals or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.65% |
| Values | Daily Returns |
YX Precious Metals vs. JAKS Resources Bhd
Performance |
| Timeline |
| YX Precious Metals |
| JAKS Resources Bhd |
YX Precious and JAKS Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and JAKS Resources
The main advantage of trading using opposite YX Precious and JAKS Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, JAKS 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 JAKS Resources will offset losses from the drop in JAKS Resources' 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 |
| JAKS Resources vs. Sunway Construction Group | JAKS Resources vs. Pesona Metro Holdings | JAKS Resources vs. Ho Hup Construction | JAKS Resources vs. Central Industrial Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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