Correlation Between Computer Forms and YTL Hospitality
Can any of the company-specific risk be diversified away by investing in both Computer Forms 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 Computer Forms and YTL Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Forms Bhd and YTL Hospitality REIT, you can compare the effects of market volatilities on Computer Forms 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 Computer Forms with a short position of YTL Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Forms and YTL Hospitality.
Diversification Opportunities for Computer Forms and YTL Hospitality
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Computer and YTL is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Computer Forms Bhd 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 Computer Forms 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 Computer Forms Bhd 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 Computer Forms i.e., Computer Forms and YTL Hospitality go up and down completely randomly.
Pair Corralation between Computer Forms and YTL Hospitality
Assuming the 90 days trading horizon Computer Forms Bhd is expected to generate 3.49 times more return on investment than YTL Hospitality. However, Computer Forms is 3.49 times more volatile than YTL Hospitality REIT. It trades about 0.01 of its potential returns per unit of risk. YTL Hospitality REIT is currently generating about 0.0 per unit of risk. If you would invest 12.00 in Computer Forms Bhd on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Computer Forms Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computer Forms Bhd vs. YTL Hospitality REIT
Performance |
| Timeline |
| Computer Forms Bhd |
| YTL Hospitality REIT |
Computer Forms and YTL Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Forms and YTL Hospitality
The main advantage of trading using opposite Computer Forms and YTL Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Forms 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.| Computer Forms vs. Minetech Resources Bhd | Computer Forms vs. Sunzen Biotech Bhd | Computer Forms vs. Hengyuan Refining | Computer Forms vs. Impiana Hotels Bhd |
| YTL Hospitality vs. Shangri La Hotels | YTL Hospitality vs. Impiana Hotels Bhd | YTL Hospitality vs. Sports Toto Berhad | YTL Hospitality vs. Choo Bee Metal |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |