Correlation Between YH Dimri and Analyst IMS

Can any of the company-specific risk be diversified away by investing in both YH Dimri and Analyst IMS 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 YH Dimri and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YH Dimri Construction and Analyst IMS Investment, you can compare the effects of market volatilities on YH Dimri and Analyst IMS 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 YH Dimri with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of YH Dimri and Analyst IMS.

Diversification Opportunities for YH Dimri and Analyst IMS

-0.71

Correlation Coefficient

YH Dimri  Analyst IMS

Pay attention - limited upside

The 3 months correlation between DIMRI and Analyst is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding YH Dimri Construction and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and YH Dimri 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 YH Dimri Construction are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of YH Dimri i.e., YH Dimri and Analyst IMS go up and down completely randomly.

Pair Corralation between YH Dimri and Analyst IMS

Assuming the 90 days trading horizon YH Dimri Construction is expected to under-perform the Analyst IMS. But the stock apears to be less risky and, when comparing its historical volatility, YH Dimri Construction is 1.18 times less risky than Analyst IMS. The stock trades about -0.21 of its potential returns per unit of risk. The Analyst IMS Investment is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest  554,700  in Analyst IMS Investment on December 22, 2024 and sell it today you would earn a total of  347,400  from holding Analyst IMS Investment or generate 62.63% return on investment over 90 days.

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

YH Dimri Construction  vs.  Analyst IMS Investment

YH Dimri Construction

Risk-Adjusted Performance

Very Weak

Over the last 90 days YH Dimri Construction has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Analyst IMS Investment

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Analyst IMS Investment are ranked lower than 39 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Analyst IMS sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YH Dimri and Analyst IMS

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

The idea behind YH Dimri Construction and Analyst IMS Investment 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.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.