Correlation Between Bank Central and Yanlord Land
Can any of the company-specific risk be diversified away by investing in both Bank Central and Yanlord Land 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 Bank Central and Yanlord Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Yanlord Land Group, you can compare the effects of market volatilities on Bank Central and Yanlord Land 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 Bank Central with a short position of Yanlord Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Yanlord Land.
Diversification Opportunities for Bank Central and Yanlord Land
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Yanlord is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Yanlord Land Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanlord Land Group and Bank Central 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 Bank Central Asia are associated (or correlated) with Yanlord Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanlord Land Group has no effect on the direction of Bank Central i.e., Bank Central and Yanlord Land go up and down completely randomly.
Pair Corralation between Bank Central and Yanlord Land
If you would invest 1,062 in Yanlord Land Group on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Yanlord Land Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Central Asia vs. Yanlord Land Group
Performance |
| Timeline |
| Bank Central Asia |
| Yanlord Land Group |
Bank Central and Yanlord Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Yanlord Land
The main advantage of trading using opposite Bank Central and Yanlord Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Yanlord Land 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 Yanlord Land will offset losses from the drop in Yanlord Land's long position.| Bank Central vs. Nedbank Group | Bank Central vs. Standard Bank Group | Bank Central vs. Kasikornbank Public Co | Bank Central vs. KBC Groep NV |
| Yanlord Land vs. HUMANA INC | Yanlord Land vs. SCOR PK | Yanlord Land vs. Aquagold International | Yanlord Land vs. Thrivent High Yield |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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