Correlation Between Rubberex M and YTL Hospitality
Can any of the company-specific risk be diversified away by investing in both Rubberex M and YTL Hospitality 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 Rubberex M and YTL Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubberex M and YTL Hospitality REIT, you can compare the effects of market volatilities on Rubberex M and YTL Hospitality 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 Rubberex M with a short position of YTL Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and YTL Hospitality.
Diversification Opportunities for Rubberex M and YTL Hospitality
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rubberex and YTL is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex M and YTL Hospitality REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YTL Hospitality REIT and Rubberex M 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 Rubberex M are associated (or correlated) with YTL Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YTL Hospitality REIT has no effect on the direction of Rubberex M i.e., Rubberex M and YTL Hospitality go up and down completely randomly.
Pair Corralation between Rubberex M and YTL Hospitality
Assuming the 90 days trading horizon Rubberex M is expected to under-perform the YTL Hospitality. In addition to that, Rubberex M is 4.14 times more volatile than YTL Hospitality REIT. It trades about -0.02 of its total potential returns per unit of risk. YTL Hospitality REIT is currently generating about 0.04 per unit of volatility. If you would invest 115.00 in YTL Hospitality REIT on September 3, 2024 and sell it today you would earn a total of 5.00 from holding YTL Hospitality REIT or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubberex M vs. YTL Hospitality REIT
Performance |
| Timeline |
| Rubberex M |
| YTL Hospitality REIT |
Rubberex M and YTL Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubberex M and YTL Hospitality
The main advantage of trading using opposite Rubberex M and YTL Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex M position performs unexpectedly, YTL Hospitality 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 YTL Hospitality will offset losses from the drop in YTL Hospitality's long position.| Rubberex M vs. Kossan Rubber Industries | Rubberex M vs. Minetech Resources Bhd | Rubberex M vs. Swift Haulage Bhd | Rubberex M vs. Insas Bhd |
| YTL Hospitality vs. Al Aqar Healthcare | YTL Hospitality vs. Minetech Resources Bhd | YTL Hospitality vs. Swift Haulage Bhd | YTL Hospitality vs. Insas 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |