Correlation Between Empire State and Global Sukses
Can any of the company-specific risk be diversified away by investing in both Empire State and Global Sukses 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 Empire State and Global Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Global Sukses Solusi, you can compare the effects of market volatilities on Empire State and Global Sukses 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 Empire State with a short position of Global Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Global Sukses.
Diversification Opportunities for Empire State and Global Sukses
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Empire and Global is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and Global Sukses Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Sukses Solusi and Empire State 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 Empire State Realty are associated (or correlated) with Global Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Sukses Solusi has no effect on the direction of Empire State i.e., Empire State and Global Sukses go up and down completely randomly.
Pair Corralation between Empire State and Global Sukses
Given the investment horizon of 90 days Empire State Realty is expected to generate 0.35 times more return on investment than Global Sukses. However, Empire State Realty is 2.89 times less risky than Global Sukses. It trades about 0.17 of its potential returns per unit of risk. Global Sukses Solusi is currently generating about -0.12 per unit of risk. If you would invest 1,049 in Empire State Realty on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Empire State Realty or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empire State Realty vs. Global Sukses Solusi
Performance |
| Timeline |
| Empire State Realty |
| Global Sukses Solusi |
Empire State and Global Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Global Sukses
The main advantage of trading using opposite Empire State and Global Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State position performs unexpectedly, Global Sukses 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 Global Sukses will offset losses from the drop in Global Sukses' long position.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| Global Sukses vs. Trimegah Karya Pratama | Global Sukses vs. Surya Biru Murni | Global Sukses vs. Indo Oil Perkasa | Global Sukses vs. Wira Global Solusi |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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