Correlation Between National Vision and YTL Berhad
Can any of the company-specific risk be diversified away by investing in both National Vision 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 National Vision and YTL Berhad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Vision Holdings and YTL Berhad, you can compare the effects of market volatilities on National Vision 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 National Vision with a short position of YTL Berhad. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Vision and YTL Berhad.
Diversification Opportunities for National Vision and YTL Berhad
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and YTL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and YTL Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YTL Berhad and National Vision 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 National Vision Holdings 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 National Vision i.e., National Vision and YTL Berhad go up and down completely randomly.
Pair Corralation between National Vision and YTL Berhad
Considering the 90-day investment horizon National Vision Holdings is expected to generate 0.78 times more return on investment than YTL Berhad. However, National Vision Holdings is 1.28 times less risky than YTL Berhad. It trades about 0.17 of its potential returns per unit of risk. YTL Berhad is currently generating about -0.09 per unit of risk. If you would invest 987.00 in National Vision Holdings on September 13, 2024 and sell it today you would earn a total of 194.00 from holding National Vision Holdings or generate 19.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
National Vision Holdings vs. YTL Berhad
Performance |
| Timeline |
| National Vision Holdings |
| YTL Berhad |
National Vision and YTL Berhad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Vision and YTL Berhad
The main advantage of trading using opposite National Vision and YTL Berhad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision 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.| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
| YTL Berhad vs. Iridium Communications | YTL Berhad vs. Radcom | YTL Berhad vs. Grupo Televisa SAB | YTL Berhad vs. National Vision Holdings |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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