Correlation Between De Grey and YASKAWA ELEC
Can any of the company-specific risk be diversified away by investing in both De Grey and YASKAWA ELEC 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 De Grey and YASKAWA ELEC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Grey Mining and YASKAWA ELEC UNSP, you can compare the effects of market volatilities on De Grey and YASKAWA ELEC 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 De Grey with a short position of YASKAWA ELEC. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Grey and YASKAWA ELEC.
Diversification Opportunities for De Grey and YASKAWA ELEC
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DGD and YASKAWA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding De Grey Mining and YASKAWA ELEC UNSP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YASKAWA ELEC UNSP and De Grey 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 De Grey Mining are associated (or correlated) with YASKAWA ELEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YASKAWA ELEC UNSP has no effect on the direction of De Grey i.e., De Grey and YASKAWA ELEC go up and down completely randomly.
Pair Corralation between De Grey and YASKAWA ELEC
Assuming the 90 days trading horizon De Grey Mining is expected to generate 2.73 times more return on investment than YASKAWA ELEC. However, De Grey is 2.73 times more volatile than YASKAWA ELEC UNSP. It trades about 0.18 of its potential returns per unit of risk. YASKAWA ELEC UNSP is currently generating about -0.02 per unit of risk. If you would invest 82.00 in De Grey Mining on October 12, 2024 and sell it today you would earn a total of 32.00 from holding De Grey Mining or generate 39.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
De Grey Mining vs. YASKAWA ELEC UNSP
Performance |
| Timeline |
| De Grey Mining |
| YASKAWA ELEC UNSP |
De Grey and YASKAWA ELEC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Grey and YASKAWA ELEC
The main advantage of trading using opposite De Grey and YASKAWA ELEC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Grey position performs unexpectedly, YASKAWA ELEC 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 YASKAWA ELEC will offset losses from the drop in YASKAWA ELEC's long position.| De Grey vs. OURGAME INTHOLDL 00005 | De Grey vs. GAMING FAC SA | De Grey vs. AWILCO DRILLING PLC | De Grey vs. UNITED UTILITIES GR |
| YASKAWA ELEC vs. United Breweries Co | YASKAWA ELEC vs. De Grey Mining | YASKAWA ELEC vs. Western Copper and | YASKAWA ELEC vs. Harmony Gold Mining |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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