Correlation Between First State and Yoma Strategic

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Can any of the company-specific risk be diversified away by investing in both First State and Yoma Strategic 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 First State and Yoma Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First State Financial and Yoma Strategic Holdings, you can compare the effects of market volatilities on First State and Yoma Strategic 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 First State with a short position of Yoma Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and Yoma Strategic.

Diversification Opportunities for First State and Yoma Strategic

FirstYomaDiversified AwayFirstYomaDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between First and Yoma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and Yoma Strategic Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoma Strategic Holdings and First State 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 First State Financial are associated (or correlated) with Yoma Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoma Strategic Holdings has no effect on the direction of First State i.e., First State and Yoma Strategic go up and down completely randomly.

Pair Corralation between First State and Yoma Strategic

If you would invest  0.00  in Yoma Strategic Holdings on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Yoma Strategic Holdings or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

First State Financial  vs.  Yoma Strategic Holdings

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 050100150
JavaScript chart by amCharts 3.21.15FSTF YMAIF
       Timeline  
First State Financial 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days First State Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, First State is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
Yoma Strategic Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Yoma Strategic Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.0580.060.0620.0640.0660.0680.070.072

First State and Yoma Strategic Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-48.66-36.45-24.23-12.010.012.7825.7838.7751.77 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.15FSTF YMAIF
       Returns  

Pair Trading with First State and Yoma Strategic

The main advantage of trading using opposite First State and Yoma Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, Yoma Strategic 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 Yoma Strategic will offset losses from the drop in Yoma Strategic's long position.
The idea behind First State Financial and Yoma Strategic Holdings 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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