Correlation Between Evolution Mining and YY Group

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

By analyzing existing cross correlation between Evolution Mining and YY Group Holding, you can compare the effects of market volatilities on Evolution Mining and YY Group 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 Evolution Mining with a short position of YY Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and YY Group.

Diversification Opportunities for Evolution Mining and YY Group

-0.26

Correlation Coefficient

Evolution Mining  YY Group

Very good diversification

The 3 months correlation between Evolution and YYGH is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining and YY Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YY Group Holding and Evolution Mining 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 Evolution Mining are associated (or correlated) with YY Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YY Group Holding has no effect on the direction of Evolution Mining i.e., Evolution Mining and YY Group go up and down completely randomly.

Pair Corralation between Evolution Mining and YY Group

Assuming the 90 days horizon Evolution Mining is expected to generate 0.85 times more return on investment than YY Group. However, Evolution Mining is 1.17 times less risky than YY Group. It trades about 0.2 of its potential returns per unit of risk. YY Group Holding is currently generating about -0.03 per unit of risk. If you would invest  285.00  in Evolution Mining on December 21, 2024 and sell it today you would earn a total of  150.00  from holding Evolution Mining or generate 52.63% return on investment over 90 days.

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

Evolution Mining  vs.  YY Group Holding

Evolution Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Evolution Mining are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Evolution Mining reported solid returns over the last few months and may actually be approaching a breakup point.

YY Group Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days YY Group Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Evolution Mining and YY Group

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

The idea behind Evolution Mining and YY Group Holding 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.