Correlation Between YTLBerhad and Minerals Technologies
Can any of the company-specific risk be diversified away by investing in both YTLBerhad and Minerals Technologies 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 YTLBerhad and Minerals Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YTL Berhad and Minerals Technologies, you can compare the effects of market volatilities on YTLBerhad and Minerals Technologies 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 YTLBerhad with a short position of Minerals Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of YTLBerhad and Minerals Technologies.
Diversification Opportunities for YTLBerhad and Minerals Technologies
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YTLBerhad and Minerals is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding YTL Berhad and Minerals Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerals Technologies and YTLBerhad 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 YTL Berhad are associated (or correlated) with Minerals Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerals Technologies has no effect on the direction of YTLBerhad i.e., YTLBerhad and Minerals Technologies go up and down completely randomly.
Pair Corralation between YTLBerhad and Minerals Technologies
Assuming the 90 days horizon YTL Berhad is expected to generate 2.06 times more return on investment than Minerals Technologies. However, YTLBerhad is 2.06 times more volatile than Minerals Technologies. It trades about 0.06 of its potential returns per unit of risk. Minerals Technologies is currently generating about 0.05 per unit of risk. If you would invest 22.00 in YTL Berhad on September 4, 2024 and sell it today you would earn a total of 24.00 from holding YTL Berhad or generate 109.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YTL Berhad vs. Minerals Technologies
Performance |
| Timeline |
| YTL Berhad |
| Minerals Technologies |
YTLBerhad and Minerals Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YTLBerhad and Minerals Technologies
The main advantage of trading using opposite YTLBerhad and Minerals Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YTLBerhad position performs unexpectedly, Minerals Technologies 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 Minerals Technologies will offset losses from the drop in Minerals Technologies' long position.| YTLBerhad vs. Spyre Therapeutics | YTLBerhad vs. EMCOR Group | YTLBerhad vs. MYR Group | YTLBerhad vs. Griffon |
| Minerals Technologies vs. Innospec | Minerals Technologies vs. Oil Dri | Minerals Technologies vs. H B Fuller | Minerals Technologies vs. Quaker Chemical |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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