Correlation Between Perusahaan Perseroan and Qingdao Haier
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and Qingdao Haier 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 Perusahaan Perseroan and Qingdao Haier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perusahaan Perseroan PT and Qingdao Haier Co, you can compare the effects of market volatilities on Perusahaan Perseroan and Qingdao Haier 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 Perusahaan Perseroan with a short position of Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and Qingdao Haier.
Diversification Opportunities for Perusahaan Perseroan and Qingdao Haier
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perusahaan and Qingdao is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and Qingdao Haier Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier and Perusahaan Perseroan 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 Perusahaan Perseroan PT are associated (or correlated) with Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and Qingdao Haier go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and Qingdao Haier
Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the Qingdao Haier. But the stock apears to be less risky and, when comparing its historical volatility, Perusahaan Perseroan PT is 1.01 times less risky than Qingdao Haier. The stock trades about -0.05 of its potential returns per unit of risk. The Qingdao Haier Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 107.00 in Qingdao Haier Co on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Qingdao Haier Co or generate 58.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perusahaan Perseroan PT vs. Qingdao Haier Co
Performance |
| Timeline |
| Perusahaan Perseroan |
| Qingdao Haier |
Perusahaan Perseroan and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perseroan and Qingdao Haier
The main advantage of trading using opposite Perusahaan Perseroan and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan position performs unexpectedly, Qingdao Haier 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 Qingdao Haier will offset losses from the drop in Qingdao Haier's long position.| Perusahaan Perseroan vs. International Game Technology | Perusahaan Perseroan vs. PENN NATL GAMING | Perusahaan Perseroan vs. HOCHSCHILD MINING | Perusahaan Perseroan vs. Media and Games |
| Qingdao Haier vs. PLAYTIKA HOLDING DL 01 | Qingdao Haier vs. Playtech plc | Qingdao Haier vs. USWE SPORTS AB | Qingdao Haier vs. COLUMBIA SPORTSWEAR |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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