Correlation Between PT Perusahaan and One Gas
Can any of the company-specific risk be diversified away by investing in both PT Perusahaan and One Gas 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 PT Perusahaan and One Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Perusahaan Gas and One Gas, you can compare the effects of market volatilities on PT Perusahaan and One Gas 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 PT Perusahaan with a short position of One Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Perusahaan and One Gas.
Diversification Opportunities for PT Perusahaan and One Gas
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PPAAF and One is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PT Perusahaan Gas and One Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Gas and PT Perusahaan 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 PT Perusahaan Gas are associated (or correlated) with One Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Gas has no effect on the direction of PT Perusahaan i.e., PT Perusahaan and One Gas go up and down completely randomly.
Pair Corralation between PT Perusahaan and One Gas
If you would invest 6,925 in One Gas on November 1, 2024 and sell it today you would earn a total of 83.50 from holding One Gas or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
PT Perusahaan Gas vs. One Gas
Performance |
| Timeline |
| PT Perusahaan Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| One Gas |
PT Perusahaan and One Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Perusahaan and One Gas
The main advantage of trading using opposite PT Perusahaan and One Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Perusahaan position performs unexpectedly, One Gas 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 One Gas will offset losses from the drop in One Gas' long position.| PT Perusahaan vs. ENN Energy Holdings | PT Perusahaan vs. APA Group | PT Perusahaan vs. EverGen Infrastructure Corp | PT Perusahaan vs. Beijing Gas Blue |
| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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