Correlation Between YX Precious and Hong Leong
Can any of the company-specific risk be diversified away by investing in both YX Precious and Hong Leong 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 Hong Leong 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 Hong Leong Bank, you can compare the effects of market volatilities on YX Precious and Hong Leong 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 Hong Leong. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Hong Leong.
Diversification Opportunities for YX Precious and Hong Leong
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0250 and Hong is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Hong Leong Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Leong Bank 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 Hong Leong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Leong Bank has no effect on the direction of YX Precious i.e., YX Precious and Hong Leong go up and down completely randomly.
Pair Corralation between YX Precious and Hong Leong
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Hong Leong. In addition to that, YX Precious is 3.04 times more volatile than Hong Leong Bank. It trades about 0.0 of its total potential returns per unit of risk. Hong Leong Bank is currently generating about 0.05 per unit of volatility. If you would invest 1,860 in Hong Leong Bank on October 29, 2024 and sell it today you would earn a total of 158.00 from holding Hong Leong Bank or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
YX Precious Metals vs. Hong Leong Bank
Performance |
| Timeline |
| YX Precious Metals |
| Hong Leong Bank |
YX Precious and Hong Leong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Hong Leong
The main advantage of trading using opposite YX Precious and Hong Leong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Hong Leong 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 Hong Leong will offset losses from the drop in Hong Leong's long position.| YX Precious vs. YTL Hospitality REIT | YX Precious vs. Press Metal Bhd | YX Precious vs. IHH Healthcare Bhd | YX Precious vs. Computer Forms Bhd |
| Hong Leong vs. Malayan Banking Bhd | Hong Leong vs. Public Bank Bhd | Hong Leong vs. RHB Bank Bhd | Hong Leong vs. Nexgram Holdings 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |