Correlation Between YX Precious and Icon Offshore
Can any of the company-specific risk be diversified away by investing in both YX Precious and Icon Offshore 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 Icon Offshore 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 Icon Offshore Bhd, you can compare the effects of market volatilities on YX Precious and Icon Offshore 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 Icon Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Icon Offshore.
Diversification Opportunities for YX Precious and Icon Offshore
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 0250 and Icon is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Icon Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Offshore 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 Icon Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Offshore Bhd has no effect on the direction of YX Precious i.e., YX Precious and Icon Offshore go up and down completely randomly.
Pair Corralation between YX Precious and Icon Offshore
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Icon Offshore. But the stock apears to be less risky and, when comparing its historical volatility, YX Precious Metals is 1.29 times less risky than Icon Offshore. The stock trades about -0.24 of its potential returns per unit of risk. The Icon Offshore Bhd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 105.00 in Icon Offshore Bhd on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Icon Offshore Bhd or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YX Precious Metals vs. Icon Offshore Bhd
Performance |
| Timeline |
| YX Precious Metals |
| Icon Offshore Bhd |
YX Precious and Icon Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Icon Offshore
The main advantage of trading using opposite YX Precious and Icon Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Icon Offshore 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 Icon Offshore will offset losses from the drop in Icon Offshore'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 |
| Icon Offshore vs. Barakah Offshore Petroleum | Icon Offshore vs. Digistar Bhd | Icon Offshore vs. Minetech Resources Bhd | Icon Offshore vs. OpenSys M 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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