Correlation Between Yong Concrete and Yggdrazil Group
Can any of the company-specific risk be diversified away by investing in both Yong Concrete and Yggdrazil Group 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 Yong Concrete and Yggdrazil Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yong Concrete PCL and Yggdrazil Group Public, you can compare the effects of market volatilities on Yong Concrete and Yggdrazil Group 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 Yong Concrete with a short position of Yggdrazil Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yong Concrete and Yggdrazil Group.
Diversification Opportunities for Yong Concrete and Yggdrazil Group
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yong and Yggdrazil is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Yong Concrete PCL and Yggdrazil Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yggdrazil Group Public and Yong Concrete 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 Yong Concrete PCL are associated (or correlated) with Yggdrazil Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yggdrazil Group Public has no effect on the direction of Yong Concrete i.e., Yong Concrete and Yggdrazil Group go up and down completely randomly.
Pair Corralation between Yong Concrete and Yggdrazil Group
Assuming the 90 days trading horizon Yong Concrete PCL is expected to generate 0.42 times more return on investment than Yggdrazil Group. However, Yong Concrete PCL is 2.37 times less risky than Yggdrazil Group. It trades about -0.08 of its potential returns per unit of risk. Yggdrazil Group Public is currently generating about -0.1 per unit of risk. If you would invest 277.00 in Yong Concrete PCL on September 1, 2024 and sell it today you would lose (155.00) from holding Yong Concrete PCL or give up 55.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Yong Concrete PCL vs. Yggdrazil Group Public
Performance |
| Timeline |
| Yong Concrete PCL |
| Yggdrazil Group Public |
Yong Concrete and Yggdrazil Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yong Concrete and Yggdrazil Group
The main advantage of trading using opposite Yong Concrete and Yggdrazil Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yong Concrete position performs unexpectedly, Yggdrazil Group 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 Yggdrazil Group will offset losses from the drop in Yggdrazil Group's long position.| Yong Concrete vs. Exotic Food Public | Yong Concrete vs. Knight Club Capital | Yong Concrete vs. North East Rubbers | Yong Concrete vs. Yggdrazil Group Public |
| Yggdrazil Group vs. Jay Mart Public | Yggdrazil Group vs. Exotic Food Public | Yggdrazil Group vs. WICE Logistics PCL | Yggdrazil Group vs. VGI 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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