Correlation Between Yamaha Corp and Stingray
Can any of the company-specific risk be diversified away by investing in both Yamaha Corp and Stingray 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 Yamaha Corp and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yamaha Corp DRC and Stingray Group, you can compare the effects of market volatilities on Yamaha Corp and Stingray 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 Yamaha Corp with a short position of Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yamaha Corp and Stingray.
Diversification Opportunities for Yamaha Corp and Stingray
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yamaha and Stingray is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Yamaha Corp DRC and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group and Yamaha Corp 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 Yamaha Corp DRC are associated (or correlated) with Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Yamaha Corp i.e., Yamaha Corp and Stingray go up and down completely randomly.
Pair Corralation between Yamaha Corp and Stingray
Assuming the 90 days horizon Yamaha Corp DRC is expected to under-perform the Stingray. In addition to that, Yamaha Corp is 1.05 times more volatile than Stingray Group. It trades about -0.25 of its total potential returns per unit of risk. Stingray Group is currently generating about 0.13 per unit of volatility. If you would invest 532.00 in Stingray Group on August 27, 2024 and sell it today you would earn a total of 37.00 from holding Stingray Group or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yamaha Corp DRC vs. Stingray Group
Performance |
| Timeline |
| Yamaha Corp DRC |
| Stingray Group |
Yamaha Corp and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yamaha Corp and Stingray
The main advantage of trading using opposite Yamaha Corp and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yamaha Corp position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| Yamaha Corp vs. HUMANA INC | Yamaha Corp vs. Aquagold International | Yamaha Corp vs. Barloworld Ltd ADR | Yamaha Corp vs. Morningstar Unconstrained Allocation |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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