Correlation Between Perusahaan Perseroan and Data Modul
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and Data Modul 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 Data Modul 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 Data Modul AG, you can compare the effects of market volatilities on Perusahaan Perseroan and Data Modul 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 Data Modul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and Data Modul.
Diversification Opportunities for Perusahaan Perseroan and Data Modul
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perusahaan and Data is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and Data Modul AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Modul AG 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 Data Modul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Modul AG has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and Data Modul go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and Data Modul
Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the Data Modul. But the stock apears to be less risky and, when comparing its historical volatility, Perusahaan Perseroan PT is 1.08 times less risky than Data Modul. The stock trades about -0.07 of its potential returns per unit of risk. The Data Modul AG is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,720 in Data Modul AG on October 11, 2024 and sell it today you would lose (60.00) from holding Data Modul AG or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Perusahaan Perseroan PT vs. Data Modul AG
Performance |
| Timeline |
| Perusahaan Perseroan |
| Data Modul AG |
Perusahaan Perseroan and Data Modul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perseroan and Data Modul
The main advantage of trading using opposite Perusahaan Perseroan and Data Modul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan position performs unexpectedly, Data Modul 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 Data Modul will offset losses from the drop in Data Modul's long position.| Perusahaan Perseroan vs. Dave Busters Entertainment | Perusahaan Perseroan vs. JD SPORTS FASH | Perusahaan Perseroan vs. TOWNSQUARE MEDIA INC | Perusahaan Perseroan vs. GREENX METALS LTD |
| Data Modul vs. SEI INVESTMENTS | Data Modul vs. JD SPORTS FASH | Data Modul vs. NTG Nordic Transport | Data Modul vs. WisdomTree Investments |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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