Correlation Between PT Global and Beijing MediaLimited
Can any of the company-specific risk be diversified away by investing in both PT Global and Beijing MediaLimited 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 Beijing MediaLimited 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 Beijing Media, you can compare the effects of market volatilities on PT Global and Beijing MediaLimited 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 Beijing MediaLimited. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and Beijing MediaLimited.
Diversification Opportunities for PT Global and Beijing MediaLimited
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 06L and Beijing is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom and Beijing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing MediaLimited 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 Beijing MediaLimited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing MediaLimited has no effect on the direction of PT Global i.e., PT Global and Beijing MediaLimited go up and down completely randomly.
Pair Corralation between PT Global and Beijing MediaLimited
If you would invest 3.55 in Beijing Media on August 29, 2024 and sell it today you would earn a total of 0.05 from holding Beijing Media or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Global Mediacom vs. Beijing Media
Performance |
| Timeline |
| PT Global Mediacom |
| Beijing MediaLimited |
PT Global and Beijing MediaLimited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Global and Beijing MediaLimited
The main advantage of trading using opposite PT Global and Beijing MediaLimited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global position performs unexpectedly, Beijing MediaLimited 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 Beijing MediaLimited will offset losses from the drop in Beijing MediaLimited's long position.| PT Global vs. LGI Homes | PT Global vs. INVITATION HOMES DL | PT Global vs. American Homes 4 | PT Global vs. The Home Depot |
| Beijing MediaLimited vs. The Interpublic Group | Beijing MediaLimited vs. Superior Plus Corp | Beijing MediaLimited vs. NMI Holdings | Beijing MediaLimited vs. Origin Agritech |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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