Correlation Between YY and PropertyGuru

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

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

Diversification Opportunities for YY and PropertyGuru

0.0

Correlation Coefficient

YY  PropertyGuru

Pay attention - limited upside

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

Pair Corralation between YY and PropertyGuru

If you would invest  4,107  in YY Inc Class on December 29, 2024 and sell it today you would earn a total of  156.00  from holding YY Inc Class or generate 3.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

YY Inc Class  vs.  PropertyGuru Group

YY Inc Class

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in YY Inc Class are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, YY may actually be approaching a critical reversion point that can send shares even higher in April 2025.

PropertyGuru Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days PropertyGuru Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PropertyGuru is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with YY and PropertyGuru

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

The idea behind YY Inc Class and PropertyGuru 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.