Correlation Between Pantech Group and YX Precious

Can any of the company-specific risk be diversified away by investing in both Pantech Group and YX Precious 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 Pantech Group and YX Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pantech Group Holdings and YX Precious Metals, you can compare the effects of market volatilities on Pantech Group and YX Precious 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 Pantech Group with a short position of YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and YX Precious.

Diversification Opportunities for Pantech Group and YX Precious

-0.09

Correlation Coefficient

Pantech Group  YX Precious

Good diversification

The 3 months correlation between Pantech and 0250 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and YX Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YX Precious Metals and Pantech Group 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 Pantech Group Holdings are associated (or correlated) with YX Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YX Precious Metals has no effect on the direction of Pantech Group i.e., Pantech Group and YX Precious go up and down completely randomly.

Pair Corralation between Pantech Group and YX Precious

Assuming the 90 days trading horizon Pantech Group Holdings is expected to generate 0.45 times more return on investment than YX Precious. However, Pantech Group Holdings is 2.21 times less risky than YX Precious. It trades about 0.02 of its potential returns per unit of risk. YX Precious Metals is currently generating about -0.07 per unit of risk. If you would invest  95.00  in Pantech Group Holdings on September 14, 2024 and sell it today you would earn a total of  1.00  from holding Pantech Group Holdings or generate 1.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pantech Group Holdings  vs.  YX Precious Metals

Pantech Group Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pantech Group Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Pantech Group is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

YX Precious Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YX Precious Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Pantech Group and YX Precious

The main advantage of trading using opposite Pantech Group and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, YX Precious 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 YX Precious will offset losses from the drop in YX Precious' long position.

The idea behind Pantech Group Holdings and YX Precious Metals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.