Correlation Between YX Precious and Leader Steel
Can any of the company-specific risk be diversified away by investing in both YX Precious and Leader Steel 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 Leader Steel 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 Leader Steel Holdings, you can compare the effects of market volatilities on YX Precious and Leader Steel 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 Leader Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Leader Steel.
Diversification Opportunities for YX Precious and Leader Steel
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0250 and Leader is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Leader Steel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leader Steel Holdings 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 Leader Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leader Steel Holdings has no effect on the direction of YX Precious i.e., YX Precious and Leader Steel go up and down completely randomly.
Pair Corralation between YX Precious and Leader Steel
Assuming the 90 days trading horizon YX Precious Metals is expected to generate 0.8 times more return on investment than Leader Steel. However, YX Precious Metals is 1.25 times less risky than Leader Steel. It trades about 0.01 of its potential returns per unit of risk. Leader Steel Holdings is currently generating about -0.04 per unit of risk. If you would invest 24.00 in YX Precious Metals on October 25, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YX Precious Metals vs. Leader Steel Holdings
Performance |
| Timeline |
| YX Precious Metals |
| Leader Steel Holdings |
YX Precious and Leader Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Leader Steel
The main advantage of trading using opposite YX Precious and Leader Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Leader Steel 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 Leader Steel will offset losses from the drop in Leader Steel's long position.| YX Precious vs. Kawan Food Bhd | YX Precious vs. Leader Steel Holdings | YX Precious vs. Lysaght Galvanized Steel | YX Precious vs. K One Technology Bhd |
| Leader Steel vs. Press Metal Bhd | Leader Steel vs. PMB Technology Bhd | Leader Steel vs. Pantech Group Holdings | Leader Steel vs. CSC Steel 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |