Correlation Between YX Precious and Aeon Credit
Can any of the company-specific risk be diversified away by investing in both YX Precious and Aeon Credit 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 Aeon Credit 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 Aeon Credit Service, you can compare the effects of market volatilities on YX Precious and Aeon Credit 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 Aeon Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Aeon Credit.
Diversification Opportunities for YX Precious and Aeon Credit
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0250 and Aeon is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Aeon Credit Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Credit Service 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 Aeon Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Credit Service has no effect on the direction of YX Precious i.e., YX Precious and Aeon Credit go up and down completely randomly.
Pair Corralation between YX Precious and Aeon Credit
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Aeon Credit. In addition to that, YX Precious is 2.03 times more volatile than Aeon Credit Service. It trades about -0.29 of its total potential returns per unit of risk. Aeon Credit Service is currently generating about -0.16 per unit of volatility. If you would invest 707.00 in Aeon Credit Service on August 24, 2024 and sell it today you would lose (22.00) from holding Aeon Credit Service or give up 3.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YX Precious Metals vs. Aeon Credit Service
Performance |
| Timeline |
| YX Precious Metals |
| Aeon Credit Service |
YX Precious and Aeon Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Aeon Credit
The main advantage of trading using opposite YX Precious and Aeon Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Aeon Credit 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 Aeon Credit will offset losses from the drop in Aeon Credit's long position.| YX Precious vs. Shangri La Hotels | YX Precious vs. Datasonic Group Bhd | YX Precious vs. RHB Bank Bhd | YX Precious vs. Kossan Rubber Industries |
| Aeon Credit vs. Oriental Food Industries | Aeon Credit vs. Hong Leong Bank | Aeon Credit vs. Alliance Financial Group | Aeon Credit vs. Kawan Food 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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