Correlation Between YTL Hospitality and Eversafe Rubber
Can any of the company-specific risk be diversified away by investing in both YTL Hospitality and Eversafe Rubber 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 YTL Hospitality and Eversafe Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YTL Hospitality REIT and Eversafe Rubber Bhd, you can compare the effects of market volatilities on YTL Hospitality and Eversafe Rubber 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 YTL Hospitality with a short position of Eversafe Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of YTL Hospitality and Eversafe Rubber.
Diversification Opportunities for YTL Hospitality and Eversafe Rubber
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between YTL and Eversafe is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding YTL Hospitality REIT and Eversafe Rubber Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eversafe Rubber Bhd and YTL Hospitality 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 YTL Hospitality REIT are associated (or correlated) with Eversafe Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eversafe Rubber Bhd has no effect on the direction of YTL Hospitality i.e., YTL Hospitality and Eversafe Rubber go up and down completely randomly.
Pair Corralation between YTL Hospitality and Eversafe Rubber
Assuming the 90 days trading horizon YTL Hospitality REIT is expected to generate 0.17 times more return on investment than Eversafe Rubber. However, YTL Hospitality REIT is 5.81 times less risky than Eversafe Rubber. It trades about 0.05 of its potential returns per unit of risk. Eversafe Rubber Bhd is currently generating about -0.04 per unit of risk. If you would invest 119.00 in YTL Hospitality REIT on September 1, 2024 and sell it today you would earn a total of 1.00 from holding YTL Hospitality REIT or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YTL Hospitality REIT vs. Eversafe Rubber Bhd
Performance |
| Timeline |
| YTL Hospitality REIT |
| Eversafe Rubber Bhd |
YTL Hospitality and Eversafe Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YTL Hospitality and Eversafe Rubber
The main advantage of trading using opposite YTL Hospitality and Eversafe Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YTL Hospitality position performs unexpectedly, Eversafe Rubber 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 Eversafe Rubber will offset losses from the drop in Eversafe Rubber's long position.| YTL Hospitality vs. Eversafe Rubber Bhd | YTL Hospitality vs. Kluang Rubber | YTL Hospitality vs. FARM FRESH BERHAD | YTL Hospitality vs. JF Technology BHD |
| Eversafe Rubber vs. Supercomnet Technologies Bhd | Eversafe Rubber vs. Cosmos Technology International | Eversafe Rubber vs. Kawan Food Bhd | Eversafe Rubber vs. Cloudpoint Technology Berhad |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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