Correlation Between PT Global and Volkswagen
Can any of the company-specific risk be diversified away by investing in both PT Global and Volkswagen 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 Volkswagen 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 Volkswagen AG, you can compare the effects of market volatilities on PT Global and Volkswagen 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 Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and Volkswagen.
Diversification Opportunities for PT Global and Volkswagen
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 06L and Volkswagen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom and Volkswagen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG 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 Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG has no effect on the direction of PT Global i.e., PT Global and Volkswagen go up and down completely randomly.
Pair Corralation between PT Global and Volkswagen
If you would invest 8,660 in Volkswagen AG on September 13, 2024 and sell it today you would earn a total of 220.00 from holding Volkswagen AG or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Global Mediacom vs. Volkswagen AG
Performance |
| Timeline |
| PT Global Mediacom |
| Volkswagen AG |
PT Global and Volkswagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Global and Volkswagen
The main advantage of trading using opposite PT Global and Volkswagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global position performs unexpectedly, Volkswagen 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 Volkswagen will offset losses from the drop in Volkswagen's long position.| PT Global vs. The Walt Disney | PT Global vs. Charter Communications | PT Global vs. Warner Music Group | PT Global vs. Superior Plus Corp |
| Volkswagen vs. Singapore Telecommunications Limited | Volkswagen vs. Corporate Office Properties | Volkswagen vs. Verizon Communications | Volkswagen vs. LANDSEA HOMES P |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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