Correlation Between YX Precious and PMB Technology
Can any of the company-specific risk be diversified away by investing in both YX Precious and PMB Technology 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 PMB Technology 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 PMB Technology Bhd, you can compare the effects of market volatilities on YX Precious and PMB Technology 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 PMB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and PMB Technology.
Diversification Opportunities for YX Precious and PMB Technology
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0250 and PMB is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and PMB Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMB Technology 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 PMB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMB Technology Bhd has no effect on the direction of YX Precious i.e., YX Precious and PMB Technology go up and down completely randomly.
Pair Corralation between YX Precious and PMB Technology
Assuming the 90 days trading horizon YX Precious Metals is expected to generate 0.88 times more return on investment than PMB Technology. However, YX Precious Metals is 1.14 times less risky than PMB Technology. It trades about 0.0 of its potential returns per unit of risk. PMB Technology Bhd is currently generating about -0.07 per unit of risk. If you would invest 27.00 in YX Precious Metals on September 2, 2024 and sell it today you would lose (2.00) from holding YX Precious Metals or give up 7.41% 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. PMB Technology Bhd
Performance |
| Timeline |
| YX Precious Metals |
| PMB Technology Bhd |
YX Precious and PMB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and PMB Technology
The main advantage of trading using opposite YX Precious and PMB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, PMB Technology 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 PMB Technology will offset losses from the drop in PMB Technology's 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 |
| PMB Technology vs. Pantech Group Holdings | PMB Technology vs. Coraza Integrated Technology | PMB Technology vs. Eonmetall Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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