Correlation Between YTL Hospitality and Microlink Solutions
Can any of the company-specific risk be diversified away by investing in both YTL Hospitality and Microlink Solutions 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 YTL Hospitality and Microlink Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YTL Hospitality REIT and Microlink Solutions Bhd, you can compare the effects of market volatilities on YTL Hospitality and Microlink Solutions 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 YTL Hospitality with a short position of Microlink Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of YTL Hospitality and Microlink Solutions.
Diversification Opportunities for YTL Hospitality and Microlink Solutions
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between YTL and Microlink is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding YTL Hospitality REIT and Microlink Solutions Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microlink Solutions Bhd and YTL Hospitality 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 Hospitality REIT are associated (or correlated) with Microlink Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microlink Solutions Bhd has no effect on the direction of YTL Hospitality i.e., YTL Hospitality and Microlink Solutions go up and down completely randomly.
Pair Corralation between YTL Hospitality and Microlink Solutions
Assuming the 90 days trading horizon YTL Hospitality is expected to generate 1381.46 times less return on investment than Microlink Solutions. But when comparing it to its historical volatility, YTL Hospitality REIT is 16.6 times less risky than Microlink Solutions. It trades about 0.0 of its potential returns per unit of risk. Microlink Solutions Bhd is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Microlink Solutions Bhd on September 24, 2024 and sell it today you would earn a total of 10.00 from holding Microlink Solutions Bhd or generate 83.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
YTL Hospitality REIT vs. Microlink Solutions Bhd
Performance |
Timeline |
YTL Hospitality REIT |
Microlink Solutions Bhd |
YTL Hospitality and Microlink Solutions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YTL Hospitality and Microlink Solutions
The main advantage of trading using opposite YTL Hospitality and Microlink Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YTL Hospitality position performs unexpectedly, Microlink Solutions 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 Microlink Solutions will offset losses from the drop in Microlink Solutions' long position.YTL Hospitality vs. Al Aqar Healthcare | YTL Hospitality vs. OSK Holdings Bhd | YTL Hospitality vs. FARM FRESH BERHAD | YTL Hospitality vs. Pentamaster Bhd |
Microlink Solutions vs. Malayan Banking Bhd | Microlink Solutions vs. Public Bank Bhd | Microlink Solutions vs. Petronas Chemicals Group | Microlink Solutions vs. Tenaga Nasional Bhd |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |