Correlation Between Yggdrazil Group and Major Cineplex

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

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

Diversification Opportunities for Yggdrazil Group and Major Cineplex

0.01

Correlation Coefficient

Yggdrazil Group  Major Cineplex

Significant diversification

The 3 months correlation between Yggdrazil and Major is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Yggdrazil Group Public and Major Cineplex Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Cineplex Group and Yggdrazil Group 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 Yggdrazil Group Public are associated (or correlated) with Major Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Cineplex Group has no effect on the direction of Yggdrazil Group i.e., Yggdrazil Group and Major Cineplex go up and down completely randomly.

Pair Corralation between Yggdrazil Group and Major Cineplex

Assuming the 90 days trading horizon Yggdrazil Group Public is expected to generate 5.99 times more return on investment than Major Cineplex. However, Yggdrazil Group is 5.99 times more volatile than Major Cineplex Group. It trades about 0.03 of its potential returns per unit of risk. Major Cineplex Group is currently generating about -0.12 per unit of risk. If you would invest  64.00  in Yggdrazil Group Public on November 29, 2024 and sell it today you would earn a total of  0.00  from holding Yggdrazil Group Public or generate 0.0% return on investment over 90 days.

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

Yggdrazil Group Public  vs.  Major Cineplex Group

Yggdrazil Group Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yggdrazil Group Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, Yggdrazil Group may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Major Cineplex Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Major Cineplex Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Yggdrazil Group and Major Cineplex

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

The idea behind Yggdrazil Group Public and Major Cineplex Group 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.