Correlation Between YX Precious and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both YX Precious and Aurelius Technologies 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 Aurelius Technologies 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 Aurelius Technologies Bhd, you can compare the effects of market volatilities on YX Precious and Aurelius Technologies 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 Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Aurelius Technologies.
Diversification Opportunities for YX Precious and Aurelius Technologies
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0250 and Aurelius is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Aurelius Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Technologies 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 Aurelius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Technologies Bhd has no effect on the direction of YX Precious i.e., YX Precious and Aurelius Technologies go up and down completely randomly.
Pair Corralation between YX Precious and Aurelius Technologies
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Aurelius Technologies. But the stock apears to be less risky and, when comparing its historical volatility, YX Precious Metals is 1.26 times less risky than Aurelius Technologies. The stock trades about -0.24 of its potential returns per unit of risk. The Aurelius Technologies Bhd is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 295.00 in Aurelius Technologies Bhd on August 29, 2024 and sell it today you would lose (6.00) from holding Aurelius Technologies Bhd or give up 2.03% 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. Aurelius Technologies Bhd
Performance |
| Timeline |
| YX Precious Metals |
| Aurelius Technologies Bhd |
YX Precious and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Aurelius Technologies
The main advantage of trading using opposite YX Precious and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Aurelius Technologies 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 Aurelius Technologies will offset losses from the drop in Aurelius Technologies' 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 |
| Aurelius Technologies vs. PIE Industrial Bhd | Aurelius Technologies vs. Binasat Communications Bhd | Aurelius Technologies vs. YX Precious Metals | Aurelius Technologies 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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