Correlation Between Global Mediacom and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Global Mediacom and Paninvest Tbk 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 Global Mediacom and Paninvest Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Mediacom Tbk and Paninvest Tbk, you can compare the effects of market volatilities on Global Mediacom and Paninvest Tbk 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 Global Mediacom with a short position of Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Mediacom and Paninvest Tbk.
Diversification Opportunities for Global Mediacom and Paninvest Tbk
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Paninvest is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Global Mediacom Tbk and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest Tbk and Global Mediacom 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 Global Mediacom Tbk are associated (or correlated) with Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Global Mediacom i.e., Global Mediacom and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Global Mediacom and Paninvest Tbk
Assuming the 90 days trading horizon Global Mediacom Tbk is expected to under-perform the Paninvest Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Global Mediacom Tbk is 2.29 times less risky than Paninvest Tbk. The stock trades about -0.18 of its potential returns per unit of risk. The Paninvest Tbk is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 99,500 in Paninvest Tbk on August 31, 2024 and sell it today you would earn a total of 7,000 from holding Paninvest Tbk or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Mediacom Tbk vs. Paninvest Tbk
Performance |
| Timeline |
| Global Mediacom Tbk |
| Paninvest Tbk |
Global Mediacom and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Mediacom and Paninvest Tbk
The main advantage of trading using opposite Global Mediacom and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Mediacom position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk's long position.| Global Mediacom vs. Indosat Tbk | Global Mediacom vs. XL Axiata Tbk | Global Mediacom vs. Energi Mega Persada | Global Mediacom vs. Bakrie Brothers Tbk |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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