Correlation Between YX Precious and KPJ Healthcare
Can any of the company-specific risk be diversified away by investing in both YX Precious and KPJ Healthcare 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 KPJ Healthcare 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 KPJ Healthcare Bhd, you can compare the effects of market volatilities on YX Precious and KPJ Healthcare 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 KPJ Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and KPJ Healthcare.
Diversification Opportunities for YX Precious and KPJ Healthcare
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0250 and KPJ is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and KPJ Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KPJ Healthcare 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 KPJ Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KPJ Healthcare Bhd has no effect on the direction of YX Precious i.e., YX Precious and KPJ Healthcare go up and down completely randomly.
Pair Corralation between YX Precious and KPJ Healthcare
Assuming the 90 days trading horizon YX Precious Metals is expected to generate 0.76 times more return on investment than KPJ Healthcare. However, YX Precious Metals is 1.31 times less risky than KPJ Healthcare. It trades about 0.01 of its potential returns per unit of risk. KPJ Healthcare Bhd is currently generating about -0.25 per unit of risk. If you would invest 24.00 in YX Precious Metals on October 20, 2024 and sell it today you would earn a total of 0.00 from holding YX Precious Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YX Precious Metals vs. KPJ Healthcare Bhd
Performance |
| Timeline |
| YX Precious Metals |
| KPJ Healthcare Bhd |
YX Precious and KPJ Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and KPJ Healthcare
The main advantage of trading using opposite YX Precious and KPJ Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, KPJ Healthcare 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 KPJ Healthcare will offset losses from the drop in KPJ Healthcare's long position.| YX Precious vs. Melewar Industrial Group | YX Precious vs. KPJ Healthcare Bhd | YX Precious vs. Sapura Industrial Bhd | YX Precious vs. Press Metal Bhd |
| KPJ Healthcare vs. Public Bank Bhd | KPJ Healthcare vs. Dataprep Holdings Bhd | KPJ Healthcare vs. YX Precious Metals | KPJ Healthcare vs. Apollo Food Holdings |
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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