Correlation Between Public Bank and YX Precious
Can any of the company-specific risk be diversified away by investing in both Public Bank and YX Precious 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 Public Bank and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Bank Bhd and YX Precious Metals, you can compare the effects of market volatilities on Public Bank and YX Precious 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 Public Bank with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Bank and YX Precious.
Diversification Opportunities for Public Bank and YX Precious
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Public and 0250 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Public Bank Bhd and YX Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YX Precious Metals and Public Bank 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 Public Bank Bhd are associated (or correlated) with YX Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YX Precious Metals has no effect on the direction of Public Bank i.e., Public Bank and YX Precious go up and down completely randomly.
Pair Corralation between Public Bank and YX Precious
Assuming the 90 days trading horizon Public Bank Bhd is expected to generate 0.54 times more return on investment than YX Precious. However, Public Bank Bhd is 1.84 times less risky than YX Precious. It trades about -0.16 of its potential returns per unit of risk. YX Precious Metals is currently generating about -0.29 per unit of risk. If you would invest 455.00 in Public Bank Bhd on August 24, 2024 and sell it today you would lose (15.00) from holding Public Bank Bhd or give up 3.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Bank Bhd vs. YX Precious Metals
Performance |
| Timeline |
| Public Bank Bhd |
| YX Precious Metals |
Public Bank and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Bank and YX Precious
The main advantage of trading using opposite Public Bank and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Bank position performs unexpectedly, YX Precious 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 YX Precious will offset losses from the drop in YX Precious' long position.| Public Bank vs. British American Tobacco | Public Bank vs. Sports Toto Berhad | Public Bank vs. Binasat Communications Bhd | Public Bank vs. Radiant Globaltech Bhd |
| YX Precious vs. Shangri La Hotels | YX Precious vs. Datasonic Group Bhd | YX Precious vs. RHB Bank Bhd | YX Precious vs. Kossan Rubber Industries |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |