Correlation Between PIE Industrial and YX Precious
Can any of the company-specific risk be diversified away by investing in both PIE Industrial 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 PIE Industrial and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PIE Industrial Bhd and YX Precious Metals, you can compare the effects of market volatilities on PIE Industrial 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 PIE Industrial with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIE Industrial and YX Precious.
Diversification Opportunities for PIE Industrial and YX Precious
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PIE and 0250 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PIE Industrial 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 PIE Industrial 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 PIE Industrial 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 PIE Industrial i.e., PIE Industrial and YX Precious go up and down completely randomly.
Pair Corralation between PIE Industrial and YX Precious
Assuming the 90 days trading horizon PIE Industrial Bhd is expected to generate 0.93 times more return on investment than YX Precious. However, PIE Industrial Bhd is 1.07 times less risky than YX Precious. It trades about 0.05 of its potential returns per unit of risk. YX Precious Metals is currently generating about 0.01 per unit of risk. If you would invest 302.00 in PIE Industrial Bhd on November 1, 2024 and sell it today you would earn a total of 155.00 from holding PIE Industrial Bhd or generate 51.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
PIE Industrial Bhd vs. YX Precious Metals
Performance |
| Timeline |
| PIE Industrial Bhd |
| YX Precious Metals |
PIE Industrial and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PIE Industrial and YX Precious
The main advantage of trading using opposite PIE Industrial and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIE Industrial 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.| PIE Industrial vs. Eonmetall Group Bhd | PIE Industrial vs. Choo Bee Metal | PIE Industrial vs. Uchi Technologies Bhd | PIE Industrial vs. Datasonic Group Bhd |
| YX Precious vs. Kluang Rubber | YX Precious vs. Eonmetall Group Bhd | YX Precious vs. Sungei Bagan Rubber | YX Precious vs. PIE Industrial 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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