Correlation Between Yggdrazil Group and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both Yggdrazil Group and Autocorp Holding 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 Yggdrazil Group and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yggdrazil Group Public and Autocorp Holding Public, you can compare the effects of market volatilities on Yggdrazil Group and Autocorp Holding 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 Yggdrazil Group with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yggdrazil Group and Autocorp Holding.
Diversification Opportunities for Yggdrazil Group and Autocorp Holding
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yggdrazil and Autocorp is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Yggdrazil Group Public and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and Yggdrazil Group 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 Yggdrazil Group Public are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of Yggdrazil Group i.e., Yggdrazil Group and Autocorp Holding go up and down completely randomly.
Pair Corralation between Yggdrazil Group and Autocorp Holding
Assuming the 90 days trading horizon Yggdrazil Group Public is expected to generate 2.25 times more return on investment than Autocorp Holding. However, Yggdrazil Group is 2.25 times more volatile than Autocorp Holding Public. It trades about -0.09 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about -0.3 per unit of risk. If you would invest 70.00 in Yggdrazil Group Public on September 3, 2024 and sell it today you would lose (6.00) from holding Yggdrazil Group Public or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yggdrazil Group Public vs. Autocorp Holding Public
Performance |
| Timeline |
| Yggdrazil Group Public |
| Autocorp Holding Public |
Yggdrazil Group and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yggdrazil Group and Autocorp Holding
The main advantage of trading using opposite Yggdrazil Group and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yggdrazil Group position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| Yggdrazil Group vs. Jay Mart Public | Yggdrazil Group vs. Exotic Food Public | Yggdrazil Group vs. WICE Logistics PCL | Yggdrazil Group vs. VGI Public |
| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering Public |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |