Correlation Between Perusahaan Perseroan and Global Payments
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and Global Payments 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 Global Payments 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 Global Payments, you can compare the effects of market volatilities on Perusahaan Perseroan and Global Payments 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 Global Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and Global Payments.
Diversification Opportunities for Perusahaan Perseroan and Global Payments
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perusahaan and Global is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and Global Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 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 Global Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and Global Payments go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and Global Payments
Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the Global Payments. In addition to that, Perusahaan Perseroan is 1.59 times more volatile than Global Payments. It trades about -0.03 of its total potential returns per unit of risk. Global Payments is currently generating about 0.33 per unit of volatility. If you would invest 9,106 in Global Payments on August 26, 2024 and sell it today you would earn a total of 1,984 from holding Global Payments or generate 21.79% 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. Global Payments
Performance |
| Timeline |
| Perusahaan Perseroan |
| Global Payments |
Perusahaan Perseroan and Global Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perseroan and Global Payments
The main advantage of trading using opposite Perusahaan Perseroan and Global Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan position performs unexpectedly, Global Payments 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 Global Payments will offset losses from the drop in Global Payments' long position.| Perusahaan Perseroan vs. CAREER EDUCATION | Perusahaan Perseroan vs. GREENX METALS LTD | Perusahaan Perseroan vs. Evolution Mining Limited | Perusahaan Perseroan vs. Zijin Mining Group |
| Global Payments vs. CarsalesCom | Global Payments vs. CANON MARKETING JP | Global Payments vs. KINGBOARD CHEMICAL | Global Payments vs. CHEMICAL INDUSTRIES |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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