Correlation Between Beijing Gas and PT Perusahaan
Can any of the company-specific risk be diversified away by investing in both Beijing Gas and PT Perusahaan 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 Beijing Gas and PT Perusahaan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beijing Gas Blue and PT Perusahaan Gas, you can compare the effects of market volatilities on Beijing Gas and PT Perusahaan 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 Beijing Gas with a short position of PT Perusahaan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Gas and PT Perusahaan.
Diversification Opportunities for Beijing Gas and PT Perusahaan
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and PPAAF is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Gas Blue and PT Perusahaan Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Perusahaan Gas and Beijing Gas 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 Beijing Gas Blue are associated (or correlated) with PT Perusahaan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Perusahaan Gas has no effect on the direction of Beijing Gas i.e., Beijing Gas and PT Perusahaan go up and down completely randomly.
Pair Corralation between Beijing Gas and PT Perusahaan
Assuming the 90 days horizon Beijing Gas is expected to generate 2.59 times less return on investment than PT Perusahaan. In addition to that, Beijing Gas is 3.88 times more volatile than PT Perusahaan Gas. It trades about 0.06 of its total potential returns per unit of risk. PT Perusahaan Gas is currently generating about 0.58 per unit of volatility. If you would invest 7.00 in PT Perusahaan Gas on August 31, 2024 and sell it today you would earn a total of 1.80 from holding PT Perusahaan Gas or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Beijing Gas Blue vs. PT Perusahaan Gas
Performance |
| Timeline |
| Beijing Gas Blue |
| PT Perusahaan Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Beijing Gas and PT Perusahaan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Gas and PT Perusahaan
The main advantage of trading using opposite Beijing Gas and PT Perusahaan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Gas position performs unexpectedly, PT Perusahaan 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 PT Perusahaan will offset losses from the drop in PT Perusahaan's long position.| Beijing Gas vs. ENN Energy Holdings | Beijing Gas vs. EverGen Infrastructure Corp | Beijing Gas vs. OPAL Fuels | Beijing Gas vs. Atmos Energy |
| PT Perusahaan vs. ENN Energy Holdings | PT Perusahaan vs. APA Group | PT Perusahaan vs. EverGen Infrastructure Corp | PT Perusahaan vs. Beijing Gas Blue |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |