Correlation Between Tenaga Nasional and YX Precious
Can any of the company-specific risk be diversified away by investing in both Tenaga Nasional 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 Tenaga Nasional and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaga Nasional Bhd and YX Precious Metals, you can compare the effects of market volatilities on Tenaga Nasional 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 Tenaga Nasional with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaga Nasional and YX Precious.
Diversification Opportunities for Tenaga Nasional and YX Precious
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tenaga and 0250 is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Tenaga Nasional 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 Tenaga Nasional 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 Tenaga Nasional 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 Tenaga Nasional i.e., Tenaga Nasional and YX Precious go up and down completely randomly.
Pair Corralation between Tenaga Nasional and YX Precious
Assuming the 90 days trading horizon Tenaga Nasional Bhd is expected to generate 0.78 times more return on investment than YX Precious. However, Tenaga Nasional Bhd is 1.28 times less risky than YX Precious. It trades about -0.14 of its potential returns per unit of risk. YX Precious Metals is currently generating about -0.29 per unit of risk. If you would invest 1,442 in Tenaga Nasional Bhd on August 24, 2024 and sell it today you would lose (62.00) from holding Tenaga Nasional Bhd or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenaga Nasional Bhd vs. YX Precious Metals
Performance |
| Timeline |
| Tenaga Nasional Bhd |
| YX Precious Metals |
Tenaga Nasional and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaga Nasional and YX Precious
The main advantage of trading using opposite Tenaga Nasional and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaga Nasional 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.| Tenaga Nasional vs. Binasat Communications Bhd | Tenaga Nasional vs. Cloudpoint Technology Berhad | Tenaga Nasional vs. YTL Hospitality REIT | Tenaga Nasional vs. Al Aqar Healthcare |
| YX Precious vs. Shangri La Hotels | YX Precious vs. Datasonic Group Bhd | YX Precious vs. RHB Bank Bhd | YX Precious vs. Kossan Rubber Industries |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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