Correlation Between Evertz Technologies and YTL Berhad
Can any of the company-specific risk be diversified away by investing in both Evertz Technologies 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 Evertz Technologies and YTL Berhad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evertz Technologies Limited and YTL Berhad, you can compare the effects of market volatilities on Evertz Technologies 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 Evertz Technologies with a short position of YTL Berhad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertz Technologies and YTL Berhad.
Diversification Opportunities for Evertz Technologies and YTL Berhad
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evertz and YTL is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Evertz Technologies Limited and YTL Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YTL Berhad and Evertz Technologies 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 Evertz Technologies Limited 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 Evertz Technologies i.e., Evertz Technologies and YTL Berhad go up and down completely randomly.
Pair Corralation between Evertz Technologies and YTL Berhad
Assuming the 90 days horizon Evertz Technologies is expected to generate 17.65 times less return on investment than YTL Berhad. But when comparing it to its historical volatility, Evertz Technologies Limited is 3.98 times less risky than YTL Berhad. It trades about 0.05 of its potential returns per unit of risk. YTL Berhad is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 46.00 in YTL Berhad on September 14, 2024 and sell it today you would earn a total of 6.00 from holding YTL Berhad or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evertz Technologies Limited vs. YTL Berhad
Performance |
| Timeline |
| Evertz Technologies |
| YTL Berhad |
Evertz Technologies and YTL Berhad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evertz Technologies and YTL Berhad
The main advantage of trading using opposite Evertz Technologies and YTL Berhad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evertz Technologies 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.| Evertz Technologies vs. Deere Company | Evertz Technologies vs. Caterpillar | Evertz Technologies vs. Lion Electric Corp | Evertz Technologies vs. Nikola Corp |
| YTL Berhad vs. Copa Holdings SA | YTL Berhad vs. United Airlines Holdings | YTL Berhad vs. Delta Air Lines | YTL Berhad vs. SkyWest |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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