Correlation Between PropertyGuru and YY
Can any of the company-specific risk be diversified away by investing in both PropertyGuru and YY 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 PropertyGuru and YY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PropertyGuru Group and YY Inc Class, you can compare the effects of market volatilities on PropertyGuru and YY 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 PropertyGuru with a short position of YY. Check out your portfolio center. Please also check ongoing floating volatility patterns of PropertyGuru and YY.
Diversification Opportunities for PropertyGuru and YY
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PropertyGuru and YY is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PropertyGuru Group and YY Inc Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YY Inc Class and PropertyGuru 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 PropertyGuru Group are associated (or correlated) with YY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YY Inc Class has no effect on the direction of PropertyGuru i.e., PropertyGuru and YY go up and down completely randomly.
Pair Corralation between PropertyGuru and YY
Given the investment horizon of 90 days PropertyGuru Group is expected to generate 1.13 times more return on investment than YY. However, PropertyGuru is 1.13 times more volatile than YY Inc Class. It trades about 0.04 of its potential returns per unit of risk. YY Inc Class is currently generating about 0.01 per unit of risk. If you would invest 471.00 in PropertyGuru Group on August 27, 2024 and sell it today you would earn a total of 193.00 from holding PropertyGuru Group or generate 40.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PropertyGuru Group vs. YY Inc Class
Performance |
| Timeline |
| PropertyGuru Group |
| YY Inc Class |
PropertyGuru and YY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PropertyGuru and YY
The main advantage of trading using opposite PropertyGuru and YY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PropertyGuru position performs unexpectedly, YY 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 YY will offset losses from the drop in YY's long position.| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International Holdings |
| YY vs. Weibo Corp | YY vs. DouYu International Holdings | YY vs. Tencent Music Entertainment | YY vs. Autohome |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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