Correlation Between PT Global and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both PT Global and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on PT Global and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and ANTA SPORTS.
Diversification Opportunities for PT Global and ANTA SPORTS
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 06L and ANTA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of PT Global i.e., PT Global and ANTA SPORTS go up and down completely randomly.
Pair Corralation between PT Global and ANTA SPORTS
Assuming the 90 days trading horizon PT Global Mediacom is expected to generate 3.66 times more return on investment than ANTA SPORTS. However, PT Global is 3.66 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.02 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.03 per unit of risk. If you would invest 1.20 in PT Global Mediacom on August 30, 2024 and sell it today you would lose (0.45) from holding PT Global Mediacom or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Global Mediacom vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| PT Global Mediacom |
| ANTA SPORTS PRODUCT |
PT Global and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Global and ANTA SPORTS
The main advantage of trading using opposite PT Global and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| PT Global vs. Highlight Communications AG | PT Global vs. INTERSHOP Communications Aktiengesellschaft | PT Global vs. RETAIL FOOD GROUP | PT Global vs. MTI WIRELESS EDGE |
| ANTA SPORTS vs. SEALED AIR | ANTA SPORTS vs. SYSTEMAIR AB | ANTA SPORTS vs. HF SINCLAIR P | ANTA SPORTS vs. Enter Air SA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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