Correlation Between YTL Hospitality and Rubberex M
Can any of the company-specific risk be diversified away by investing in both YTL Hospitality and Rubberex M 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 Rubberex M 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 Rubberex M, you can compare the effects of market volatilities on YTL Hospitality and Rubberex M 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 Rubberex M. Check out your portfolio center. Please also check ongoing floating volatility patterns of YTL Hospitality and Rubberex M.
Diversification Opportunities for YTL Hospitality and Rubberex M
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between YTL and Rubberex is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding YTL Hospitality REIT and Rubberex M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubberex M 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 Rubberex M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubberex M has no effect on the direction of YTL Hospitality i.e., YTL Hospitality and Rubberex M go up and down completely randomly.
Pair Corralation between YTL Hospitality and Rubberex M
Assuming the 90 days trading horizon YTL Hospitality REIT is expected to generate 0.24 times more return on investment than Rubberex M. However, YTL Hospitality REIT is 4.14 times less risky than Rubberex M. It trades about 0.04 of its potential returns per unit of risk. Rubberex M is currently generating about -0.02 per unit of risk. If you would invest 115.00 in YTL Hospitality REIT on September 3, 2024 and sell it today you would earn a total of 5.00 from holding YTL Hospitality REIT or generate 4.35% 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. Rubberex M
Performance |
| Timeline |
| YTL Hospitality REIT |
| Rubberex M |
YTL Hospitality and Rubberex M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YTL Hospitality and Rubberex M
The main advantage of trading using opposite YTL Hospitality and Rubberex M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YTL Hospitality position performs unexpectedly, Rubberex M 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 Rubberex M will offset losses from the drop in Rubberex M'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 |
| Rubberex M vs. Kossan Rubber Industries | Rubberex M vs. Minetech Resources Bhd | Rubberex M vs. Swift Haulage Bhd | Rubberex M 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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