Correlation Between PT Bank and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both PT Bank and Publicis Groupe 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 Bank and Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Mandiri and Publicis Groupe SA, you can compare the effects of market volatilities on PT Bank and Publicis Groupe 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 Bank with a short position of Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Publicis Groupe.
Diversification Opportunities for PT Bank and Publicis Groupe
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PQ9 and Publicis is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe SA and PT Bank 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 Bank Mandiri are associated (or correlated) with Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of PT Bank i.e., PT Bank and Publicis Groupe go up and down completely randomly.
Pair Corralation between PT Bank and Publicis Groupe
Assuming the 90 days horizon PT Bank Mandiri is expected to under-perform the Publicis Groupe. In addition to that, PT Bank is 1.27 times more volatile than Publicis Groupe SA. It trades about -0.09 of its total potential returns per unit of risk. Publicis Groupe SA is currently generating about 0.02 per unit of volatility. If you would invest 9,994 in Publicis Groupe SA on August 27, 2024 and sell it today you would earn a total of 46.00 from holding Publicis Groupe SA or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Mandiri vs. Publicis Groupe SA
Performance |
| Timeline |
| PT Bank Mandiri |
| Publicis Groupe SA |
PT Bank and Publicis Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Publicis Groupe
The main advantage of trading using opposite PT Bank and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Publicis Groupe 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 Publicis Groupe will offset losses from the drop in Publicis Groupe's long position.| PT Bank vs. Lamar Advertising | PT Bank vs. JD SPORTS FASH | PT Bank vs. PLAYTIKA HOLDING DL 01 | PT Bank vs. LG Display Co |
| Publicis Groupe vs. Media and Games | Publicis Groupe vs. 24SEVENOFFICE GROUP AB | Publicis Groupe vs. Autohome ADR | Publicis Groupe vs. Beazer Homes USA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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