Correlation Between Global Mediacom and Yelooo Integra
Can any of the company-specific risk be diversified away by investing in both Global Mediacom and Yelooo Integra 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 Yelooo Integra 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 Yelooo Integra Datanet, you can compare the effects of market volatilities on Global Mediacom and Yelooo Integra 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 Yelooo Integra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Mediacom and Yelooo Integra.
Diversification Opportunities for Global Mediacom and Yelooo Integra
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Yelooo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Global Mediacom Tbk and Yelooo Integra Datanet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yelooo Integra Datanet 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 Yelooo Integra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yelooo Integra Datanet has no effect on the direction of Global Mediacom i.e., Global Mediacom and Yelooo Integra go up and down completely randomly.
Pair Corralation between Global Mediacom and Yelooo Integra
Assuming the 90 days trading horizon Global Mediacom Tbk is expected to under-perform the Yelooo Integra. But the stock apears to be less risky and, when comparing its historical volatility, Global Mediacom Tbk is 1.93 times less risky than Yelooo Integra. The stock trades about -0.05 of its potential returns per unit of risk. The Yelooo Integra Datanet is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,200 in Yelooo Integra Datanet on November 28, 2024 and sell it today you would lose (2,600) from holding Yelooo Integra Datanet or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Global Mediacom Tbk vs. Yelooo Integra Datanet
Performance |
| Timeline |
| Global Mediacom Tbk |
| Yelooo Integra Datanet |
Global Mediacom and Yelooo Integra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Mediacom and Yelooo Integra
The main advantage of trading using opposite Global Mediacom and Yelooo Integra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Mediacom position performs unexpectedly, Yelooo Integra 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 Yelooo Integra will offset losses from the drop in Yelooo Integra's long position.| Global Mediacom vs. Mitra Keluarga Karyasehat | Global Mediacom vs. Surya Citra Media | Global Mediacom vs. Matahari Department Store | Global Mediacom vs. Puradelta Lestari PT |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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