Correlation Between YHN Acquisition and Bukit Jalil
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Bukit Jalil 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 YHN Acquisition and Bukit Jalil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YHN Acquisition I and Bukit Jalil Global, you can compare the effects of market volatilities on YHN Acquisition and Bukit Jalil 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 YHN Acquisition with a short position of Bukit Jalil. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Bukit Jalil.
Diversification Opportunities for YHN Acquisition and Bukit Jalil
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YHN and Bukit is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Bukit Jalil Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Jalil Global and YHN Acquisition 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 YHN Acquisition I are associated (or correlated) with Bukit Jalil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Jalil Global has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Bukit Jalil go up and down completely randomly.
Pair Corralation between YHN Acquisition and Bukit Jalil
Assuming the 90 days horizon YHN Acquisition is expected to generate 380.69 times less return on investment than Bukit Jalil. But when comparing it to its historical volatility, YHN Acquisition I is 123.21 times less risky than Bukit Jalil. It trades about 0.15 of its potential returns per unit of risk. Bukit Jalil Global is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 7.25 in Bukit Jalil Global on October 20, 2024 and sell it today you would earn a total of 5.75 from holding Bukit Jalil Global or generate 79.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.37% |
| Values | Daily Returns |
YHN Acquisition I vs. Bukit Jalil Global
Performance |
| Timeline |
| YHN Acquisition I |
| Bukit Jalil Global |
YHN Acquisition and Bukit Jalil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Bukit Jalil
The main advantage of trading using opposite YHN Acquisition and Bukit Jalil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Bukit Jalil 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 Bukit Jalil will offset losses from the drop in Bukit Jalil's long position.| YHN Acquisition vs. Custom Truck One | YHN Acquisition vs. National Beverage Corp | YHN Acquisition vs. Alta Equipment Group | YHN Acquisition vs. Hertz Global Hldgs |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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