Correlation Between YTL Hospitality and SSF Home
Can any of the company-specific risk be diversified away by investing in both YTL Hospitality and SSF Home 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 SSF Home 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 SSF Home Group, you can compare the effects of market volatilities on YTL Hospitality and SSF Home 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 SSF Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of YTL Hospitality and SSF Home.
Diversification Opportunities for YTL Hospitality and SSF Home
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YTL and SSF is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding YTL Hospitality REIT and SSF Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSF Home Group 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 SSF Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSF Home Group has no effect on the direction of YTL Hospitality i.e., YTL Hospitality and SSF Home go up and down completely randomly.
Pair Corralation between YTL Hospitality and SSF Home
Assuming the 90 days trading horizon YTL Hospitality is expected to generate 4.79 times less return on investment than SSF Home. But when comparing it to its historical volatility, YTL Hospitality REIT is 2.56 times less risky than SSF Home. It trades about 0.04 of its potential returns per unit of risk. SSF Home Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 28.00 in SSF Home Group on September 3, 2024 and sell it today you would earn a total of 6.00 from holding SSF Home Group or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YTL Hospitality REIT vs. SSF Home Group
Performance |
| Timeline |
| YTL Hospitality REIT |
| SSF Home Group |
YTL Hospitality and SSF Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YTL Hospitality and SSF Home
The main advantage of trading using opposite YTL Hospitality and SSF Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YTL Hospitality position performs unexpectedly, SSF Home 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 SSF Home will offset losses from the drop in SSF Home's long position.| YTL Hospitality vs. Al Aqar Healthcare | YTL Hospitality vs. Minetech Resources Bhd | YTL Hospitality vs. Swift Haulage Bhd | YTL Hospitality vs. Insas Bhd |
| SSF Home vs. Choo Bee Metal | SSF Home vs. EA Technique M | SSF Home vs. Resintech Bhd | SSF Home vs. Minetech Resources 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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