Correlation Between PESTECH International and YX Precious
Can any of the company-specific risk be diversified away by investing in both PESTECH International and YX Precious 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 PESTECH International and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PESTECH International Bhd and YX Precious Metals, you can compare the effects of market volatilities on PESTECH International and YX Precious 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 PESTECH International with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of PESTECH International and YX Precious.
Diversification Opportunities for PESTECH International and YX Precious
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PESTECH and 0250 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding PESTECH International Bhd and YX Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YX Precious Metals and PESTECH International 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 PESTECH International Bhd are associated (or correlated) with YX Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YX Precious Metals has no effect on the direction of PESTECH International i.e., PESTECH International and YX Precious go up and down completely randomly.
Pair Corralation between PESTECH International and YX Precious
Assuming the 90 days trading horizon PESTECH International Bhd is expected to under-perform the YX Precious. In addition to that, PESTECH International is 2.28 times more volatile than YX Precious Metals. It trades about -0.01 of its total potential returns per unit of risk. YX Precious Metals is currently generating about -0.01 per unit of volatility. If you would invest 27.00 in YX Precious Metals on October 16, 2024 and sell it today you would lose (3.00) from holding YX Precious Metals or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PESTECH International Bhd vs. YX Precious Metals
Performance |
| Timeline |
| PESTECH International Bhd |
| YX Precious Metals |
PESTECH International and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PESTECH International and YX Precious
The main advantage of trading using opposite PESTECH International and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PESTECH International position performs unexpectedly, YX Precious 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 YX Precious will offset losses from the drop in YX Precious' long position.| PESTECH International vs. Press Metal Bhd | PESTECH International vs. Choo Bee Metal | PESTECH International vs. Computer Forms Bhd | PESTECH International vs. Binasat Communications Bhd |
| YX Precious vs. Binasat Communications Bhd | YX Precious vs. K One Technology Bhd | YX Precious vs. Uchi Technologies Bhd | YX Precious vs. Lyc Healthcare 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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