Correlation Between General Mills and PT Global
Can any of the company-specific risk be diversified away by investing in both General Mills and PT Global 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 General Mills and PT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Mills and PT Global Mediacom, you can compare the effects of market volatilities on General Mills and PT Global 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 General Mills with a short position of PT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and PT Global.
Diversification Opportunities for General Mills and PT Global
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between General and 06L is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding General Mills and PT Global Mediacom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Global Mediacom and General Mills 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 General Mills are associated (or correlated) with PT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Global Mediacom has no effect on the direction of General Mills i.e., General Mills and PT Global go up and down completely randomly.
Pair Corralation between General Mills and PT Global
If you would invest 8,309 in General Mills on September 4, 2024 and sell it today you would earn a total of 622.00 from holding General Mills or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Mills vs. PT Global Mediacom
Performance |
| Timeline |
| General Mills |
| PT Global Mediacom |
General Mills and PT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Mills and PT Global
The main advantage of trading using opposite General Mills and PT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Mills position performs unexpectedly, PT Global 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 Global will offset losses from the drop in PT Global's long position.| General Mills vs. Suntory Beverage Food | General Mills vs. Molson Coors Beverage | General Mills vs. New Residential Investment | General Mills vs. AOYAMA TRADING |
| PT Global vs. DICKER DATA LTD | PT Global vs. BE Semiconductor Industries | PT Global vs. Public Storage | PT Global vs. NXP Semiconductors NV |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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