Correlation Between Nextmart and Yoma Strategic
Can any of the company-specific risk be diversified away by investing in both Nextmart and Yoma Strategic 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 Nextmart and Yoma Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextmart and Yoma Strategic Holdings, you can compare the effects of market volatilities on Nextmart and Yoma Strategic 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 Nextmart with a short position of Yoma Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextmart and Yoma Strategic.
Diversification Opportunities for Nextmart and Yoma Strategic
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nextmart and Yoma is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nextmart and Yoma Strategic Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoma Strategic Holdings and Nextmart 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 Nextmart are associated (or correlated) with Yoma Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoma Strategic Holdings has no effect on the direction of Nextmart i.e., Nextmart and Yoma Strategic go up and down completely randomly.
Pair Corralation between Nextmart and Yoma Strategic
Given the investment horizon of 90 days Nextmart is expected to generate 2.81 times more return on investment than Yoma Strategic. However, Nextmart is 2.81 times more volatile than Yoma Strategic Holdings. It trades about 0.08 of its potential returns per unit of risk. Yoma Strategic Holdings is currently generating about 0.03 per unit of risk. If you would invest 1.14 in Nextmart on October 13, 2024 and sell it today you would lose (1.08) from holding Nextmart or give up 94.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.78% |
| Values | Daily Returns |
Nextmart vs. Yoma Strategic Holdings
Performance |
| Timeline |
| Nextmart |
| Yoma Strategic Holdings |
Nextmart and Yoma Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextmart and Yoma Strategic
The main advantage of trading using opposite Nextmart and Yoma Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextmart position performs unexpectedly, Yoma Strategic 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 Yoma Strategic will offset losses from the drop in Yoma Strategic's long position.| Nextmart vs. Genesis Electronics Group | Nextmart vs. Industrial Nanotech | Nextmart vs. Intl Star | Nextmart vs. HeadsUp Entertainment International |
| Yoma Strategic vs. Teijin | Yoma Strategic vs. Halma plc | Yoma Strategic vs. Keppel Limited | Yoma Strategic vs. Ayala Corp ADR |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |