Correlation Between Designer Brands and YTL Berhad
Can any of the company-specific risk be diversified away by investing in both Designer Brands and YTL Berhad 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 Designer Brands and YTL Berhad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Designer Brands and YTL Berhad, you can compare the effects of market volatilities on Designer Brands and YTL Berhad 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 Designer Brands with a short position of YTL Berhad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Designer Brands and YTL Berhad.
Diversification Opportunities for Designer Brands and YTL Berhad
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Designer and YTL is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Designer Brands and YTL Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YTL Berhad and Designer Brands 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 Designer Brands are associated (or correlated) with YTL Berhad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YTL Berhad has no effect on the direction of Designer Brands i.e., Designer Brands and YTL Berhad go up and down completely randomly.
Pair Corralation between Designer Brands and YTL Berhad
If you would invest 560.00 in Designer Brands on October 21, 2024 and sell it today you would earn a total of 12.00 from holding Designer Brands or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Designer Brands vs. YTL Berhad
Performance |
| Timeline |
| Designer Brands |
| YTL Berhad |
Designer Brands and YTL Berhad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Designer Brands and YTL Berhad
The main advantage of trading using opposite Designer Brands and YTL Berhad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Designer Brands position performs unexpectedly, YTL Berhad 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 Berhad will offset losses from the drop in YTL Berhad's long position.| Designer Brands vs. Qurate Retail Series | Designer Brands vs. Hour Loop | Designer Brands vs. Solo Brands | Designer Brands vs. 1StdibsCom |
| YTL Berhad vs. CarsalesCom Ltd ADR | YTL Berhad vs. QuinStreet | YTL Berhad vs. flyExclusive, | YTL Berhad vs. HNI Corp |
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.
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