Correlation Between XCPCNL Business and YTLBerhad

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

By analyzing existing cross correlation between XCPCNL Business Services and YTL Berhad, you can compare the effects of market volatilities on XCPCNL Business and YTLBerhad 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 XCPCNL Business with a short position of YTLBerhad. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCPCNL Business and YTLBerhad.

Diversification Opportunities for XCPCNL Business and YTLBerhad

0.0

Correlation Coefficient

XCPCNL Business  YTLBerhad

Pay attention - limited upside

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

Pair Corralation between XCPCNL Business and YTLBerhad

If you would invest  0.01  in XCPCNL Business Services on December 19, 2024 and sell it today you would earn a total of  0.00  from holding XCPCNL Business Services or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

XCPCNL Business Services  vs.  YTL Berhad

XCPCNL Business Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days XCPCNL Business Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, XCPCNL Business is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

YTL Berhad

Risk-Adjusted Performance

Very Weak

Over the last 90 days YTL Berhad has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with XCPCNL Business and YTLBerhad

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

The idea behind XCPCNL Business Services and YTL Berhad 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.