Correlation Between PT Global and CNVISION MEDIA
Can any of the company-specific risk be diversified away by investing in both PT Global and CNVISION MEDIA 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 CNVISION MEDIA 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 CNVISION MEDIA, you can compare the effects of market volatilities on PT Global and CNVISION MEDIA 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 CNVISION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and CNVISION MEDIA.
Diversification Opportunities for PT Global and CNVISION MEDIA
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 06L and CNVISION is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom and CNVISION MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNVISION MEDIA 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 CNVISION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNVISION MEDIA has no effect on the direction of PT Global i.e., PT Global and CNVISION MEDIA go up and down completely randomly.
Pair Corralation between PT Global and CNVISION MEDIA
Assuming the 90 days trading horizon PT Global Mediacom is expected to generate 3.19 times more return on investment than CNVISION MEDIA. However, PT Global is 3.19 times more volatile than CNVISION MEDIA. It trades about 0.02 of its potential returns per unit of risk. CNVISION MEDIA is currently generating about 0.0 per unit of risk. If you would invest 1.30 in PT Global Mediacom on August 24, 2024 and sell it today you would lose (0.55) from holding PT Global Mediacom or give up 42.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Global Mediacom vs. CNVISION MEDIA
Performance |
| Timeline |
| PT Global Mediacom |
| CNVISION MEDIA |
PT Global and CNVISION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Global and CNVISION MEDIA
The main advantage of trading using opposite PT Global and CNVISION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global position performs unexpectedly, CNVISION MEDIA 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 CNVISION MEDIA will offset losses from the drop in CNVISION MEDIA's long position.| PT Global vs. Sumitomo Mitsui Construction | PT Global vs. Australian Agricultural | PT Global vs. TITAN MACHINERY | PT Global vs. AOI Electronics Co |
| CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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