Correlation Between YX Precious and Deleum Bhd
Can any of the company-specific risk be diversified away by investing in both YX Precious and Deleum Bhd 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 Deleum Bhd 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 Deleum Bhd, you can compare the effects of market volatilities on YX Precious and Deleum Bhd 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 Deleum Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Deleum Bhd.
Diversification Opportunities for YX Precious and Deleum Bhd
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 0250 and Deleum is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Deleum Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deleum 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 Deleum Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deleum Bhd has no effect on the direction of YX Precious i.e., YX Precious and Deleum Bhd go up and down completely randomly.
Pair Corralation between YX Precious and Deleum Bhd
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Deleum Bhd. But the stock apears to be less risky and, when comparing its historical volatility, YX Precious Metals is 1.27 times less risky than Deleum Bhd. The stock trades about -0.2 of its potential returns per unit of risk. The Deleum Bhd is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 149.00 in Deleum Bhd on September 2, 2024 and sell it today you would lose (6.00) from holding Deleum Bhd or give up 4.03% 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. Deleum Bhd
Performance |
| Timeline |
| YX Precious Metals |
| Deleum Bhd |
YX Precious and Deleum Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Deleum Bhd
The main advantage of trading using opposite YX Precious and Deleum Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Deleum Bhd 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 Deleum Bhd will offset losses from the drop in Deleum Bhd's 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 |
| Deleum Bhd vs. Farm Price Holdings | Deleum Bhd vs. Sapura Industrial Bhd | Deleum Bhd vs. Kluang Rubber | Deleum Bhd 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |