Correlation Between Perusahaan Perseroan and FlatexDEGIRO
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and FlatexDEGIRO 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 FlatexDEGIRO 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 flatexDEGIRO AG, you can compare the effects of market volatilities on Perusahaan Perseroan and FlatexDEGIRO 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 FlatexDEGIRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and FlatexDEGIRO.
Diversification Opportunities for Perusahaan Perseroan and FlatexDEGIRO
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perusahaan and FlatexDEGIRO is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and flatexDEGIRO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on flatexDEGIRO 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 FlatexDEGIRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of flatexDEGIRO AG has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and FlatexDEGIRO go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and FlatexDEGIRO
Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the FlatexDEGIRO. In addition to that, Perusahaan Perseroan is 3.05 times more volatile than flatexDEGIRO AG. It trades about -0.04 of its total potential returns per unit of risk. flatexDEGIRO AG is currently generating about -0.08 per unit of volatility. If you would invest 1,370 in flatexDEGIRO AG on August 27, 2024 and sell it today you would lose (38.00) from holding flatexDEGIRO AG or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perusahaan Perseroan PT vs. flatexDEGIRO AG
Performance |
| Timeline |
| Perusahaan Perseroan |
| flatexDEGIRO AG |
Perusahaan Perseroan and FlatexDEGIRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perseroan and FlatexDEGIRO
The main advantage of trading using opposite Perusahaan Perseroan and FlatexDEGIRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan position performs unexpectedly, FlatexDEGIRO 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 FlatexDEGIRO will offset losses from the drop in FlatexDEGIRO's long position.| Perusahaan Perseroan vs. T Mobile | Perusahaan Perseroan vs. ATT Inc | Perusahaan Perseroan vs. Deutsche Telekom AG | Perusahaan Perseroan vs. Nippon Telegraph and |
| FlatexDEGIRO vs. Macquarie Group Limited | FlatexDEGIRO vs. MSCI Inc | FlatexDEGIRO vs. Superior Plus Corp | FlatexDEGIRO vs. NMI Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |