Correlation Between GUDANG GARAM and SANOMA -
Can any of the company-specific risk be diversified away by investing in both GUDANG GARAM and SANOMA - 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 GUDANG GARAM and SANOMA - into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GUDANG GARAM and SANOMA Dusseldorf, you can compare the effects of market volatilities on GUDANG GARAM and SANOMA - 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 GUDANG GARAM with a short position of SANOMA -. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUDANG GARAM and SANOMA -.
Diversification Opportunities for GUDANG GARAM and SANOMA -
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GUDANG and SANOMA is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding GUDANG GARAM and SANOMA Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOMA Dusseldorf and GUDANG GARAM 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 GUDANG GARAM are associated (or correlated) with SANOMA -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOMA Dusseldorf has no effect on the direction of GUDANG GARAM i.e., GUDANG GARAM and SANOMA - go up and down completely randomly.
Pair Corralation between GUDANG GARAM and SANOMA -
Assuming the 90 days trading horizon GUDANG GARAM is expected to under-perform the SANOMA -. In addition to that, GUDANG GARAM is 1.85 times more volatile than SANOMA Dusseldorf. It trades about -0.28 of its total potential returns per unit of risk. SANOMA Dusseldorf is currently generating about 0.17 per unit of volatility. If you would invest 791.00 in SANOMA Dusseldorf on November 7, 2024 and sell it today you would earn a total of 43.00 from holding SANOMA Dusseldorf or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUDANG GARAM vs. SANOMA Dusseldorf
Performance |
| Timeline |
| GUDANG GARAM |
| SANOMA Dusseldorf |
GUDANG GARAM and SANOMA - Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUDANG GARAM and SANOMA -
The main advantage of trading using opposite GUDANG GARAM and SANOMA - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUDANG GARAM position performs unexpectedly, SANOMA - 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 SANOMA - will offset losses from the drop in SANOMA -'s long position.| GUDANG GARAM vs. CORNISH METALS INC | GUDANG GARAM vs. East Africa Metals | GUDANG GARAM vs. FIREWEED METALS P | GUDANG GARAM vs. Highlight Communications AG |
| SANOMA - vs. NTT DATA | SANOMA - vs. Tower One Wireless | SANOMA - vs. DICKER DATA LTD | SANOMA - vs. Pure Storage |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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