Correlation Between YTL Hospitality and Tadmax Resources
Can any of the company-specific risk be diversified away by investing in both YTL Hospitality and Tadmax Resources 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 Tadmax Resources 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 Tadmax Resources Berhad, you can compare the effects of market volatilities on YTL Hospitality and Tadmax Resources 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 Tadmax Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of YTL Hospitality and Tadmax Resources.
Diversification Opportunities for YTL Hospitality and Tadmax Resources
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between YTL and Tadmax is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding YTL Hospitality REIT and Tadmax Resources Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tadmax Resources Berhad 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 Tadmax Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tadmax Resources Berhad has no effect on the direction of YTL Hospitality i.e., YTL Hospitality and Tadmax Resources go up and down completely randomly.
Pair Corralation between YTL Hospitality and Tadmax Resources
Assuming the 90 days trading horizon YTL Hospitality is expected to generate 2.29 times less return on investment than Tadmax Resources. But when comparing it to its historical volatility, YTL Hospitality REIT is 6.87 times less risky than Tadmax Resources. It trades about 0.1 of its potential returns per unit of risk. Tadmax Resources Berhad is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Tadmax Resources Berhad on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Tadmax Resources Berhad or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.82% |
| Values | Daily Returns |
YTL Hospitality REIT vs. Tadmax Resources Berhad
Performance |
| Timeline |
| YTL Hospitality REIT |
| Tadmax Resources Berhad |
YTL Hospitality and Tadmax Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YTL Hospitality and Tadmax Resources
The main advantage of trading using opposite YTL Hospitality and Tadmax Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YTL Hospitality position performs unexpectedly, Tadmax Resources 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 Tadmax Resources will offset losses from the drop in Tadmax Resources' long position.| YTL Hospitality vs. Minetech Resources Bhd | YTL Hospitality vs. Swift Haulage Bhd | YTL Hospitality vs. Insas Bhd | YTL Hospitality vs. Bina Darulaman Bhd |
| Tadmax Resources vs. SFP Tech Holdings | Tadmax Resources vs. Kobay Tech Bhd | Tadmax Resources vs. MI Technovation Bhd | Tadmax Resources vs. Uchi Technologies 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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