Correlation Between City Retail and PT Data
Can any of the company-specific risk be diversified away by investing in both City Retail and PT Data 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 City Retail and PT Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Retail Developments and PT Data Sinergitama, you can compare the effects of market volatilities on City Retail and PT Data 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 City Retail with a short position of PT Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Retail and PT Data.
Diversification Opportunities for City Retail and PT Data
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between City and ELIT is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding City Retail Developments and PT Data Sinergitama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Data Sinergitama and City Retail 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 City Retail Developments are associated (or correlated) with PT Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Data Sinergitama has no effect on the direction of City Retail i.e., City Retail and PT Data go up and down completely randomly.
Pair Corralation between City Retail and PT Data
Assuming the 90 days trading horizon City Retail is expected to generate 1825.0 times less return on investment than PT Data. But when comparing it to its historical volatility, City Retail Developments is 10.96 times less risky than PT Data. It trades about 0.0 of its potential returns per unit of risk. PT Data Sinergitama is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,500 in PT Data Sinergitama on October 26, 2024 and sell it today you would earn a total of 1,100 from holding PT Data Sinergitama or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Retail Developments vs. PT Data Sinergitama
Performance |
| Timeline |
| City Retail Developments |
| PT Data Sinergitama |
City Retail and PT Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Retail and PT Data
The main advantage of trading using opposite City Retail and PT Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Retail position performs unexpectedly, PT Data 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 Data will offset losses from the drop in PT Data's long position.| City Retail vs. Metropolitan Land Tbk | City Retail vs. Bekasi Fajar Industrial | City Retail vs. Greenwood Sejahtera Tbk | City Retail vs. Metropolitan Kentjana Tbk |
| PT Data vs. Victoria Insurance Tbk | PT Data vs. Lippo General Insurance | PT Data vs. PT UBC Medical | PT Data vs. Dharma Polimetal Tbk |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |