Correlation Between YX Precious and Choo Bee
Can any of the company-specific risk be diversified away by investing in both YX Precious and Choo Bee 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 Choo Bee 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 Choo Bee Metal, you can compare the effects of market volatilities on YX Precious and Choo Bee 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 Choo Bee. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Choo Bee.
Diversification Opportunities for YX Precious and Choo Bee
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0250 and Choo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Choo Bee Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choo Bee Metal 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 Choo Bee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choo Bee Metal has no effect on the direction of YX Precious i.e., YX Precious and Choo Bee go up and down completely randomly.
Pair Corralation between YX Precious and Choo Bee
Assuming the 90 days trading horizon YX Precious Metals is expected to generate 1.0 times more return on investment than Choo Bee. However, YX Precious is 1.0 times more volatile than Choo Bee Metal. It trades about -0.05 of its potential returns per unit of risk. Choo Bee Metal is currently generating about -0.06 per unit of risk. If you would invest 27.00 in YX Precious Metals on November 2, 2024 and sell it today you would lose (3.00) from holding YX Precious Metals or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YX Precious Metals vs. Choo Bee Metal
Performance |
| Timeline |
| YX Precious Metals |
| Choo Bee Metal |
YX Precious and Choo Bee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Choo Bee
The main advantage of trading using opposite YX Precious and Choo Bee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Choo Bee 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 Choo Bee will offset losses from the drop in Choo Bee's long position.| YX Precious vs. Supercomnet Technologies Bhd | YX Precious vs. Sunzen Biotech Bhd | YX Precious vs. Berjaya Food Bhd | YX Precious vs. Cosmos Technology International |
| Choo Bee vs. Binasat Communications Bhd | Choo Bee vs. Cosmos Technology International | Choo Bee vs. YX Precious Metals | Choo Bee vs. PMB Technology 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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