Correlation Between YX Precious and Star Media
Can any of the company-specific risk be diversified away by investing in both YX Precious and Star Media 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 YX Precious and Star Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YX Precious Metals and Star Media Group, you can compare the effects of market volatilities on YX Precious and Star Media 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 YX Precious with a short position of Star Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Star Media.
Diversification Opportunities for YX Precious and Star Media
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0250 and Star is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Star Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Media Group and YX Precious 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 YX Precious Metals are associated (or correlated) with Star Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Media Group has no effect on the direction of YX Precious i.e., YX Precious and Star Media go up and down completely randomly.
Pair Corralation between YX Precious and Star Media
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Star Media. In addition to that, YX Precious is 1.23 times more volatile than Star Media Group. It trades about -0.1 of its total potential returns per unit of risk. Star Media Group is currently generating about -0.07 per unit of volatility. If you would invest 45.00 in Star Media Group on September 15, 2024 and sell it today you would lose (4.00) from holding Star Media Group or give up 8.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
YX Precious Metals vs. Star Media Group
Performance |
Timeline |
YX Precious Metals |
Star Media Group |
YX Precious and Star Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YX Precious and Star Media
The main advantage of trading using opposite YX Precious and Star Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Star Media 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 Star Media will offset losses from the drop in Star Media's long position.YX Precious vs. Malayan Banking Bhd | YX Precious vs. Public Bank Bhd | YX Precious vs. Petronas Chemicals Group | YX Precious vs. Tenaga Nasional Bhd |
Star Media vs. YX Precious Metals | Star Media vs. DC HEALTHCARE HOLDINGS | Star Media vs. Press Metal Bhd | Star Media vs. Al Aqar Healthcare |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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