Correlation Between YTL Hospitality and Al Aqar
Can any of the company-specific risk be diversified away by investing in both YTL Hospitality and Al Aqar 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 Al Aqar 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 Al Aqar Healthcare, you can compare the effects of market volatilities on YTL Hospitality and Al Aqar 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 Al Aqar. Check out your portfolio center. Please also check ongoing floating volatility patterns of YTL Hospitality and Al Aqar.
Diversification Opportunities for YTL Hospitality and Al Aqar
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between YTL and 5116 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding YTL Hospitality REIT and Al Aqar Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Aqar Healthcare 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 Al Aqar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Aqar Healthcare has no effect on the direction of YTL Hospitality i.e., YTL Hospitality and Al Aqar go up and down completely randomly.
Pair Corralation between YTL Hospitality and Al Aqar
Assuming the 90 days trading horizon YTL Hospitality REIT is expected to generate 1.1 times more return on investment than Al Aqar. However, YTL Hospitality is 1.1 times more volatile than Al Aqar Healthcare. It trades about 0.09 of its potential returns per unit of risk. Al Aqar Healthcare is currently generating about 0.04 per unit of risk. If you would invest 78.00 in YTL Hospitality REIT on August 28, 2024 and sell it today you would earn a total of 40.00 from holding YTL Hospitality REIT or generate 51.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YTL Hospitality REIT vs. Al Aqar Healthcare
Performance |
| Timeline |
| YTL Hospitality REIT |
| Al Aqar Healthcare |
YTL Hospitality and Al Aqar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YTL Hospitality and Al Aqar
The main advantage of trading using opposite YTL Hospitality and Al Aqar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YTL Hospitality position performs unexpectedly, Al Aqar 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 Al Aqar will offset losses from the drop in Al Aqar's long position.| YTL Hospitality vs. Eonmetall Group Bhd | YTL Hospitality vs. CB Industrial Product | YTL Hospitality vs. PIE Industrial Bhd | YTL Hospitality vs. Cengild Medical Berhad |
| Al Aqar vs. Digistar Bhd | Al Aqar vs. Minetech Resources Bhd | Al Aqar vs. OpenSys M Bhd | Al Aqar vs. Insas 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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