Correlation Between Golden Matrix and YY Group

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

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

Diversification Opportunities for Golden Matrix and YY Group

0.04

Correlation Coefficient

Golden Matrix  YY Group

Significant diversification

The 3 months correlation between Golden and YYGH is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group 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 Golden Matrix 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 Golden Matrix Group 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 Golden Matrix i.e., Golden Matrix and YY Group go up and down completely randomly.

Pair Corralation between Golden Matrix and YY Group

Given the investment horizon of 90 days Golden Matrix Group is expected to under-perform the YY Group. In addition to that, Golden Matrix is 1.35 times more volatile than YY Group Holding. It trades about -0.08 of its total potential returns per unit of risk. YY Group Holding is currently generating about 0.05 per unit of volatility. If you would invest  168.00  in YY Group Holding on October 6, 2024 and sell it today you would earn a total of  9.00  from holding YY Group Holding or generate 5.36% return on investment over 90 days.

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

Golden Matrix Group  vs.  YY Group Holding

Golden Matrix Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Matrix Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile 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.

YY Group Holding

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in YY Group Holding are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting technical and fundamental indicators, YY Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Golden Matrix and YY Group

The main advantage of trading using opposite Golden Matrix and YY Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Matrix 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 Golden Matrix Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.