Correlation Between PT Global and ATRESMEDIA
Can any of the company-specific risk be diversified away by investing in both PT Global and ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA, you can compare the effects of market volatilities on PT Global and ATRESMEDIA 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 ATRESMEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Global and ATRESMEDIA.
Diversification Opportunities for PT Global and ATRESMEDIA
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 06L and ATRESMEDIA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding PT Global Mediacom and ATRESMEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRESMEDIA 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 ATRESMEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRESMEDIA has no effect on the direction of PT Global i.e., PT Global and ATRESMEDIA go up and down completely randomly.
Pair Corralation between PT Global and ATRESMEDIA
Assuming the 90 days trading horizon PT Global Mediacom is expected to generate 7.92 times more return on investment than ATRESMEDIA. However, PT Global is 7.92 times more volatile than ATRESMEDIA. It trades about 0.03 of its potential returns per unit of risk. ATRESMEDIA is currently generating about 0.07 per unit of risk. If you would invest 1.10 in PT Global Mediacom on August 28, 2024 and sell it today you would lose (0.35) from holding PT Global Mediacom or give up 31.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
PT Global Mediacom vs. ATRESMEDIA
Performance |
| Timeline |
| PT Global Mediacom |
| ATRESMEDIA |
PT Global and ATRESMEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Global and ATRESMEDIA
The main advantage of trading using opposite PT Global and ATRESMEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Global position performs unexpectedly, ATRESMEDIA 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 ATRESMEDIA will offset losses from the drop in ATRESMEDIA'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 |
| ATRESMEDIA vs. FUYO GENERAL LEASE | ATRESMEDIA vs. Jupiter Fund Management | ATRESMEDIA vs. Platinum Investment Management | ATRESMEDIA vs. Computer And Technologies |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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