Correlation Between Perusahaan Perseroan and Trade Desk
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and Trade Desk 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 Trade Desk 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 The Trade Desk, you can compare the effects of market volatilities on Perusahaan Perseroan and Trade Desk 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 Trade Desk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and Trade Desk.
Diversification Opportunities for Perusahaan Perseroan and Trade Desk
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Perusahaan and Trade is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and The Trade Desk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trade Desk 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 Trade Desk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trade Desk has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and Trade Desk go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and Trade Desk
Assuming the 90 days horizon Perusahaan Perseroan is expected to generate 2.42 times less return on investment than Trade Desk. But when comparing it to its historical volatility, Perusahaan Perseroan PT is 1.04 times less risky than Trade Desk. It trades about 0.05 of its potential returns per unit of risk. The Trade Desk is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 10,940 in The Trade Desk on September 4, 2024 and sell it today you would earn a total of 1,186 from holding The Trade Desk or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perusahaan Perseroan PT vs. The Trade Desk
Performance |
| Timeline |
| Perusahaan Perseroan |
| Trade Desk |
Perusahaan Perseroan and Trade Desk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perseroan and Trade Desk
The main advantage of trading using opposite Perusahaan Perseroan and Trade Desk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan position performs unexpectedly, Trade Desk 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 Trade Desk will offset losses from the drop in Trade Desk's long position.| Perusahaan Perseroan vs. The Trade Desk | Perusahaan Perseroan vs. Auto Trader Group | Perusahaan Perseroan vs. BE Semiconductor Industries | Perusahaan Perseroan vs. Vastned Retail NV |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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