Correlation Between YTL Hospitality and Media Prima
Can any of the company-specific risk be diversified away by investing in both YTL Hospitality and Media Prima 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 Media Prima 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 Media Prima Bhd, you can compare the effects of market volatilities on YTL Hospitality and Media Prima 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 Media Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of YTL Hospitality and Media Prima.
Diversification Opportunities for YTL Hospitality and Media Prima
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YTL and Media is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding YTL Hospitality REIT and Media Prima Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Prima 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 Media Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Prima Bhd has no effect on the direction of YTL Hospitality i.e., YTL Hospitality and Media Prima go up and down completely randomly.
Pair Corralation between YTL Hospitality and Media Prima
Assuming the 90 days trading horizon YTL Hospitality REIT is expected to generate 0.9 times more return on investment than Media Prima. However, YTL Hospitality REIT is 1.11 times less risky than Media Prima. It trades about -0.01 of its potential returns per unit of risk. Media Prima Bhd is currently generating about -0.03 per unit of risk. If you would invest 120.00 in YTL Hospitality REIT on September 26, 2024 and sell it today you would lose (1.00) from holding YTL Hospitality REIT or give up 0.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
YTL Hospitality REIT vs. Media Prima Bhd
Performance |
Timeline |
YTL Hospitality REIT |
Media Prima Bhd |
YTL Hospitality and Media Prima Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YTL Hospitality and Media Prima
The main advantage of trading using opposite YTL Hospitality and Media Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YTL Hospitality position performs unexpectedly, Media Prima 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 Media Prima will offset losses from the drop in Media Prima's long position.YTL Hospitality vs. Aeon Credit Service | YTL Hospitality vs. Malayan Banking Bhd | YTL Hospitality vs. Sports Toto Berhad | YTL Hospitality vs. Binasat Communications Bhd |
Media Prima vs. Star Media Group | Media Prima vs. Asia Media Group | Media Prima vs. Advance Information Marketing | Media Prima vs. Notion Vtec 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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