Correlation Between YX Precious and Star Media
Can any of the company-specific risk be diversified away by investing in both YX Precious and Star Media 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 Star Media 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 Star Media Group, you can compare the effects of market volatilities on YX Precious and Star Media 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 Star Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Star Media.
Diversification Opportunities for YX Precious and Star Media
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 0250 and Star is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Star Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Media Group 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 Star Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Media Group has no effect on the direction of YX Precious i.e., YX Precious and Star Media go up and down completely randomly.
Pair Corralation between YX Precious and Star Media
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Star Media. In addition to that, YX Precious is 1.16 times more volatile than Star Media Group. It trades about -0.17 of its total potential returns per unit of risk. Star Media Group is currently generating about 0.07 per unit of volatility. If you would invest 40.00 in Star Media Group on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Star Media Group or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
YX Precious Metals vs. Star Media Group
Performance |
| Timeline |
| YX Precious Metals |
| Star Media Group |
YX Precious and Star Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Star Media
The main advantage of trading using opposite YX Precious and Star Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Star Media 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 Star Media will offset losses from the drop in Star Media's long position.| YX Precious vs. Computer Forms Bhd | YX Precious vs. Greatech Technology Bhd | YX Precious vs. Minetech Resources Bhd | YX Precious vs. Dufu Tech Corp |
| Star Media vs. Hong Leong Bank | Star Media vs. Cloudpoint Technology Berhad | Star Media vs. Eonmetall Group Bhd | Star Media vs. YX Precious Metals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |