Correlation Between Press Metal and YX Precious
Can any of the company-specific risk be diversified away by investing in both Press Metal 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 Press Metal and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Press Metal Bhd and YX Precious Metals, you can compare the effects of market volatilities on Press Metal 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 Press Metal with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Press Metal and YX Precious.
Diversification Opportunities for Press Metal and YX Precious
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Press and 0250 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Press Metal 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 Press Metal 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 Press Metal 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 Press Metal i.e., Press Metal and YX Precious go up and down completely randomly.
Pair Corralation between Press Metal and YX Precious
Assuming the 90 days trading horizon Press Metal Bhd is expected to generate 0.93 times more return on investment than YX Precious. However, Press Metal Bhd is 1.08 times less risky than YX Precious. It trades about 0.01 of its potential returns per unit of risk. YX Precious Metals is currently generating about -0.05 per unit of risk. If you would invest 486.00 in Press Metal Bhd on November 2, 2024 and sell it today you would earn a total of 2.00 from holding Press Metal Bhd or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Press Metal Bhd vs. YX Precious Metals
Performance |
| Timeline |
| Press Metal Bhd |
| YX Precious Metals |
Press Metal and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Press Metal and YX Precious
The main advantage of trading using opposite Press Metal and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Press Metal 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.| Press Metal vs. PMB Technology Bhd | Press Metal vs. Cosmos Technology International | Press Metal vs. SFP Tech Holdings | Press Metal vs. Choo Bee Metal |
| YX Precious vs. Supercomnet Technologies Bhd | YX Precious vs. Sunzen Biotech Bhd | YX Precious vs. Berjaya Food Bhd | YX Precious vs. Cosmos Technology International |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |