Correlation Between Publicis Groupe and Media Nusantara
Can any of the company-specific risk be diversified away by investing in both Publicis Groupe and Media Nusantara 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 Publicis Groupe and Media Nusantara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Publicis Groupe SA and Media Nusantara Citra, you can compare the effects of market volatilities on Publicis Groupe and Media Nusantara 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 Publicis Groupe with a short position of Media Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Publicis Groupe and Media Nusantara.
Diversification Opportunities for Publicis Groupe and Media Nusantara
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Publicis and Media is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Publicis Groupe SA and Media Nusantara Citra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Nusantara Citra and Publicis Groupe 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 Publicis Groupe SA are associated (or correlated) with Media Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Nusantara Citra has no effect on the direction of Publicis Groupe i.e., Publicis Groupe and Media Nusantara go up and down completely randomly.
Pair Corralation between Publicis Groupe and Media Nusantara
If you would invest 188.00 in Media Nusantara Citra on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Media Nusantara Citra or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Publicis Groupe SA vs. Media Nusantara Citra
Performance |
| Timeline |
| Publicis Groupe SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Media Nusantara Citra |
Publicis Groupe and Media Nusantara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Publicis Groupe and Media Nusantara
The main advantage of trading using opposite Publicis Groupe and Media Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Publicis Groupe position performs unexpectedly, Media Nusantara 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 Media Nusantara will offset losses from the drop in Media Nusantara's long position.| Publicis Groupe vs. SwissCom AG | Publicis Groupe vs. Compagnie de Saint Gobain | Publicis Groupe vs. Vinci SA ADR | Publicis Groupe vs. Compagnie Generale des |
| Media Nusantara vs. FormFactor | Media Nusantara vs. RCS MediaGroup SpA | Media Nusantara vs. Sphere Entertainment Co | Media Nusantara vs. Dave Busters Entertainment |
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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