Correlation Between TAMBANG BATUBARA-B- and YT REALTY

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

By analyzing existing cross correlation between TAMBANG BATUBARA B and YT REALTY GRP, you can compare the effects of market volatilities on TAMBANG BATUBARA-B- and YT REALTY 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 TAMBANG BATUBARA-B- with a short position of YT REALTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAMBANG BATUBARA-B- and YT REALTY.

Diversification Opportunities for TAMBANG BATUBARA-B- and YT REALTY

-0.72

Correlation Coefficient

TAMBANG BATUBARA-B-  YT REALTY

Pay attention - limited upside

The 3 months correlation between TAMBANG and YTZ is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding TAMBANG BATUBARA B and YT REALTY GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YT REALTY GRP and TAMBANG BATUBARA-B- 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 TAMBANG BATUBARA B are associated (or correlated) with YT REALTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YT REALTY GRP has no effect on the direction of TAMBANG BATUBARA-B- i.e., TAMBANG BATUBARA-B- and YT REALTY go up and down completely randomly.

Pair Corralation between TAMBANG BATUBARA-B- and YT REALTY

If you would invest  3.20  in YT REALTY GRP on February 5, 2024 and sell it today you would earn a total of  0.50  from holding YT REALTY GRP or generate 15.62% return on investment over 90 days.

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

TAMBANG BATUBARA B   vs.  YT REALTY GRP

TAMBANG BATUBARA-B-

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TAMBANG BATUBARA B are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, TAMBANG BATUBARA-B- is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

YT REALTY GRP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YT REALTY GRP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, YT REALTY is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with TAMBANG BATUBARA-B- and YT REALTY

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

The idea behind TAMBANG BATUBARA B and YT REALTY GRP 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.