Correlation Between PMB Technology and YX Precious
Can any of the company-specific risk be diversified away by investing in both PMB Technology 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 PMB Technology and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PMB Technology Bhd and YX Precious Metals, you can compare the effects of market volatilities on PMB Technology 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 PMB Technology with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMB Technology and YX Precious.
Diversification Opportunities for PMB Technology and YX Precious
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PMB and 0250 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding PMB Technology 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 PMB Technology 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 PMB Technology 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 PMB Technology i.e., PMB Technology and YX Precious go up and down completely randomly.
Pair Corralation between PMB Technology and YX Precious
Assuming the 90 days trading horizon PMB Technology Bhd is expected to under-perform the YX Precious. In addition to that, PMB Technology is 1.14 times more volatile than YX Precious Metals. It trades about -0.07 of its total potential returns per unit of risk. YX Precious Metals is currently generating about 0.0 per unit of volatility. If you would invest 27.00 in YX Precious Metals on September 2, 2024 and sell it today you would lose (2.00) from holding YX Precious Metals or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PMB Technology Bhd vs. YX Precious Metals
Performance |
| Timeline |
| PMB Technology Bhd |
| YX Precious Metals |
PMB Technology and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMB Technology and YX Precious
The main advantage of trading using opposite PMB Technology and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMB Technology 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.| PMB Technology vs. Pantech Group Holdings | PMB Technology vs. Coraza Integrated Technology | PMB Technology vs. Eonmetall Group Bhd |
| YX Precious vs. Malayan Banking Bhd | YX Precious vs. Public Bank Bhd | YX Precious vs. Petronas Chemicals Group | YX Precious vs. Tenaga Nasional 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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