Correlation Between Perusahaan Perseroan and CyberAgent
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and CyberAgent 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 CyberAgent 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 CyberAgent, you can compare the effects of market volatilities on Perusahaan Perseroan and CyberAgent 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 CyberAgent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and CyberAgent.
Diversification Opportunities for Perusahaan Perseroan and CyberAgent
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perusahaan and CyberAgent is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and CyberAgent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberAgent 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 CyberAgent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberAgent has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and CyberAgent go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and CyberAgent
Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the CyberAgent. In addition to that, Perusahaan Perseroan is 1.28 times more volatile than CyberAgent. It trades about -0.22 of its total potential returns per unit of risk. CyberAgent is currently generating about 0.09 per unit of volatility. If you would invest 700.00 in CyberAgent on November 29, 2024 and sell it today you would earn a total of 25.00 from holding CyberAgent or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Perusahaan Perseroan PT vs. CyberAgent
Performance |
| Timeline |
| Perusahaan Perseroan |
| CyberAgent |
Perusahaan Perseroan and CyberAgent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perseroan and CyberAgent
The main advantage of trading using opposite Perusahaan Perseroan and CyberAgent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan position performs unexpectedly, CyberAgent 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 CyberAgent will offset losses from the drop in CyberAgent's long position.| Perusahaan Perseroan vs. Siamgas And Petrochemicals | Perusahaan Perseroan vs. Chengdu PUTIAN Telecommunications | Perusahaan Perseroan vs. FIH MOBILE | Perusahaan Perseroan vs. Tower One Wireless |
| CyberAgent vs. Sabre Insurance Group | CyberAgent vs. Salesforce | CyberAgent vs. TRADEGATE | CyberAgent vs. FLOW TRADERS LTD |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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