Correlation Between YX Precious and Mercury Industries
Can any of the company-specific risk be diversified away by investing in both YX Precious and Mercury Industries 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 Mercury Industries 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 Mercury Industries Bhd, you can compare the effects of market volatilities on YX Precious and Mercury Industries 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 Mercury Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Mercury Industries.
Diversification Opportunities for YX Precious and Mercury Industries
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0250 and Mercury is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Mercury Industries Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercury Industries 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 Mercury Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercury Industries Bhd has no effect on the direction of YX Precious i.e., YX Precious and Mercury Industries go up and down completely randomly.
Pair Corralation between YX Precious and Mercury Industries
Assuming the 90 days trading horizon YX Precious is expected to generate 18.03 times less return on investment than Mercury Industries. In addition to that, YX Precious is 1.37 times more volatile than Mercury Industries Bhd. It trades about 0.01 of its total potential returns per unit of risk. Mercury Industries Bhd is currently generating about 0.22 per unit of volatility. If you would invest 91.00 in Mercury Industries Bhd on November 3, 2024 and sell it today you would earn a total of 6.00 from holding Mercury Industries Bhd or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
YX Precious Metals vs. Mercury Industries Bhd
Performance |
| Timeline |
| YX Precious Metals |
| Mercury Industries Bhd |
YX Precious and Mercury Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Mercury Industries
The main advantage of trading using opposite YX Precious and Mercury Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Mercury Industries 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 Mercury Industries will offset losses from the drop in Mercury Industries' long position.| YX Precious vs. Dufu Tech Corp | YX Precious vs. ECM Libra Financial | YX Precious vs. ONETECH SOLUTIONS HOLDINGS | YX Precious vs. Sunway Construction Group |
| Mercury Industries vs. Aeon Credit Service | Mercury Industries vs. Malayan Banking Bhd | Mercury Industries vs. CPE Technology Berhad | Mercury Industries vs. Homeritz 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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