Correlation Between PT Global and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both PT Global and AM EAGLE 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 PT Global and AM EAGLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Global Mediacom and AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on PT Global and AM EAGLE 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 PT Global with a short position of AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and AM EAGLE.
Diversification Opportunities for PT Global and AM EAGLE
Modest diversification
The 3 months correlation between 06L and AFG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS and PT Global 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 PT Global Mediacom are associated (or correlated) with AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of PT Global i.e., PT Global and AM EAGLE go up and down completely randomly.
Pair Corralation between PT Global and AM EAGLE
If you would invest 1,760 in AM EAGLE OUTFITTERS on September 5, 2024 and sell it today you would earn a total of 130.00 from holding AM EAGLE OUTFITTERS or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Global Mediacom vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| PT Global Mediacom |
| AM EAGLE OUTFITTERS |
PT Global and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Global and AM EAGLE
The main advantage of trading using opposite PT Global and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| PT Global vs. VIRGIN WINES UK | PT Global vs. Spirent Communications plc | PT Global vs. Mobilezone Holding AG | PT Global vs. Nordic Semiconductor ASA |
| AM EAGLE vs. Compagnie Plastic Omnium | AM EAGLE vs. ANGLER GAMING PLC | AM EAGLE vs. THRACE PLASTICS | AM EAGLE vs. GAMESTOP |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |