Correlation Between Public Packages and YTL Hospitality
Can any of the company-specific risk be diversified away by investing in both Public Packages 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 Public Packages and YTL Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Packages Holdings and YTL Hospitality REIT, you can compare the effects of market volatilities on Public Packages 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 Public Packages with a short position of YTL Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Packages and YTL Hospitality.
Diversification Opportunities for Public Packages and YTL Hospitality
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Public and YTL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Public Packages Holdings 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 Public Packages 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 Public Packages Holdings 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 Public Packages i.e., Public Packages and YTL Hospitality go up and down completely randomly.
Pair Corralation between Public Packages and YTL Hospitality
Assuming the 90 days trading horizon Public Packages Holdings is expected to generate 1.98 times more return on investment than YTL Hospitality. However, Public Packages is 1.98 times more volatile than YTL Hospitality REIT. It trades about 0.09 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 77.00 in Public Packages Holdings on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Public Packages Holdings or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Public Packages Holdings vs. YTL Hospitality REIT
Performance |
| Timeline |
| Public Packages Holdings |
| YTL Hospitality REIT |
Public Packages and YTL Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Packages and YTL Hospitality
The main advantage of trading using opposite Public Packages and YTL Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Packages 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.| Public Packages vs. Riverview Rubber Estates | Public Packages vs. Tex Cycle Technology | Public Packages vs. CPE Technology Berhad | Public Packages vs. Press Metal 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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