Correlation Between MyTech Group and YX Precious
Can any of the company-specific risk be diversified away by investing in both MyTech Group 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 MyTech Group and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MyTech Group Bhd and YX Precious Metals, you can compare the effects of market volatilities on MyTech Group 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 MyTech Group with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyTech Group and YX Precious.
Diversification Opportunities for MyTech Group and YX Precious
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MyTech and 0250 is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding MyTech Group 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 MyTech Group 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 MyTech Group 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 MyTech Group i.e., MyTech Group and YX Precious go up and down completely randomly.
Pair Corralation between MyTech Group and YX Precious
Assuming the 90 days trading horizon MyTech Group Bhd is expected to generate 0.6 times more return on investment than YX Precious. However, MyTech Group Bhd is 1.66 times less risky than YX Precious. It trades about -0.3 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 44.00 in MyTech Group Bhd on August 31, 2024 and sell it today you would lose (3.00) from holding MyTech Group Bhd or give up 6.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MyTech Group Bhd vs. YX Precious Metals
Performance |
| Timeline |
| MyTech Group Bhd |
| YX Precious Metals |
MyTech Group and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyTech Group and YX Precious
The main advantage of trading using opposite MyTech Group and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyTech Group 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.| MyTech Group vs. Greatech Technology Bhd | MyTech Group vs. Genetec Technology Bhd | MyTech Group vs. PIE Industrial Bhd | MyTech Group vs. Supercomnet Technologies 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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