Correlation Between YTL Hospitality and Apollo Food
Can any of the company-specific risk be diversified away by investing in both YTL Hospitality and Apollo Food 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 Apollo Food 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 Apollo Food Holdings, you can compare the effects of market volatilities on YTL Hospitality and Apollo Food 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 Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of YTL Hospitality and Apollo Food.
Diversification Opportunities for YTL Hospitality and Apollo Food
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between YTL and Apollo is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding YTL Hospitality REIT and Apollo Food Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Food Holdings 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 Apollo Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Food Holdings has no effect on the direction of YTL Hospitality i.e., YTL Hospitality and Apollo Food go up and down completely randomly.
Pair Corralation between YTL Hospitality and Apollo Food
Assuming the 90 days trading horizon YTL Hospitality REIT is expected to generate 1.62 times more return on investment than Apollo Food. However, YTL Hospitality is 1.62 times more volatile than Apollo Food Holdings. It trades about 0.05 of its potential returns per unit of risk. Apollo Food Holdings is currently generating about -0.26 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YTL Hospitality REIT vs. Apollo Food Holdings
Performance |
| Timeline |
| YTL Hospitality REIT |
| Apollo Food Holdings |
YTL Hospitality and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YTL Hospitality and Apollo Food
The main advantage of trading using opposite YTL Hospitality and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YTL Hospitality position performs unexpectedly, Apollo Food 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 Apollo Food will offset losses from the drop in Apollo Food'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 |
| Apollo Food vs. RHB Bank Bhd | Apollo Food vs. Carlsberg Brewery Malaysia | Apollo Food vs. Berjaya Food Bhd | Apollo Food vs. Choo Bee Metal |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |