Correlation Between Sports Toto and YX Precious
Can any of the company-specific risk be diversified away by investing in both Sports Toto 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 Sports Toto and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sports Toto Berhad and YX Precious Metals, you can compare the effects of market volatilities on Sports Toto 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 Sports Toto with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and YX Precious.
Diversification Opportunities for Sports Toto and YX Precious
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sports and 0250 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad 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 Sports Toto 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 Sports Toto Berhad 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 Sports Toto i.e., Sports Toto and YX Precious go up and down completely randomly.
Pair Corralation between Sports Toto and YX Precious
Assuming the 90 days trading horizon Sports Toto Berhad is expected to generate 0.62 times more return on investment than YX Precious. However, Sports Toto Berhad is 1.62 times less risky than YX Precious. It trades about 0.32 of its potential returns per unit of risk. YX Precious Metals is currently generating about 0.01 per unit of risk. If you would invest 146.00 in Sports Toto Berhad on October 20, 2024 and sell it today you would earn a total of 8.00 from holding Sports Toto Berhad or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sports Toto Berhad vs. YX Precious Metals
Performance |
| Timeline |
| Sports Toto Berhad |
| YX Precious Metals |
Sports Toto and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Toto and YX Precious
The main advantage of trading using opposite Sports Toto and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto 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.| Sports Toto vs. Magni Tech Industries | Sports Toto vs. PESTECH International Bhd | Sports Toto vs. SSF Home Group | Sports Toto vs. Cengild Medical Berhad |
| YX Precious vs. Melewar Industrial Group | YX Precious vs. KPJ Healthcare Bhd | YX Precious vs. Sapura Industrial Bhd | YX Precious vs. Press Metal 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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