Correlation Between YX Precious and Telekom Malaysia
Can any of the company-specific risk be diversified away by investing in both YX Precious and Telekom Malaysia 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 Telekom Malaysia 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 Telekom Malaysia Bhd, you can compare the effects of market volatilities on YX Precious and Telekom Malaysia 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 Telekom Malaysia. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Telekom Malaysia.
Diversification Opportunities for YX Precious and Telekom Malaysia
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0250 and Telekom is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Telekom Malaysia Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telekom Malaysia 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 Telekom Malaysia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telekom Malaysia Bhd has no effect on the direction of YX Precious i.e., YX Precious and Telekom Malaysia go up and down completely randomly.
Pair Corralation between YX Precious and Telekom Malaysia
Assuming the 90 days trading horizon YX Precious is expected to generate 1.74 times less return on investment than Telekom Malaysia. In addition to that, YX Precious is 2.47 times more volatile than Telekom Malaysia Bhd. It trades about 0.01 of its total potential returns per unit of risk. Telekom Malaysia Bhd is currently generating about 0.06 per unit of volatility. If you would invest 474.00 in Telekom Malaysia Bhd on September 13, 2024 and sell it today you would earn a total of 178.00 from holding Telekom Malaysia Bhd or generate 37.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YX Precious Metals vs. Telekom Malaysia Bhd
Performance |
| Timeline |
| YX Precious Metals |
| Telekom Malaysia Bhd |
YX Precious and Telekom Malaysia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Telekom Malaysia
The main advantage of trading using opposite YX Precious and Telekom Malaysia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Telekom Malaysia 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 Telekom Malaysia will offset losses from the drop in Telekom Malaysia's long position.| YX Precious vs. K One Technology Bhd | YX Precious vs. Pantech Group Holdings | YX Precious vs. Nova Wellness Group | YX Precious vs. BP Plastics Holding |
| Telekom Malaysia vs. Sports Toto Berhad | Telekom Malaysia vs. TAS Offshore Bhd | Telekom Malaysia vs. Uchi Technologies Bhd | Telekom Malaysia vs. Choo Bee Metal |
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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