Correlation Between Sixt SE and PT Gudang
Can any of the company-specific risk be diversified away by investing in both Sixt SE and PT Gudang 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 Sixt SE and PT Gudang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and PT Gudang Garam, you can compare the effects of market volatilities on Sixt SE and PT Gudang 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 Sixt SE with a short position of PT Gudang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and PT Gudang.
Diversification Opportunities for Sixt SE and PT Gudang
Very good diversification
The 3 months correlation between Sixt and GGG is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and PT Gudang Garam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Gudang Garam and Sixt SE 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 Sixt SE are associated (or correlated) with PT Gudang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Gudang Garam has no effect on the direction of Sixt SE i.e., Sixt SE and PT Gudang go up and down completely randomly.
Pair Corralation between Sixt SE and PT Gudang
Assuming the 90 days trading horizon Sixt SE is expected to generate 0.38 times more return on investment than PT Gudang. However, Sixt SE is 2.6 times less risky than PT Gudang. It trades about -0.04 of its potential returns per unit of risk. PT Gudang Garam is currently generating about -0.02 per unit of risk. If you would invest 10,272 in Sixt SE on September 1, 2024 and sell it today you would lose (3,282) from holding Sixt SE or give up 31.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt SE vs. PT Gudang Garam
Performance |
| Timeline |
| Sixt SE |
| PT Gudang Garam |
Sixt SE and PT Gudang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and PT Gudang
The main advantage of trading using opposite Sixt SE and PT Gudang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, PT Gudang 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 PT Gudang will offset losses from the drop in PT Gudang's long position.| Sixt SE vs. United Rentals | Sixt SE vs. Superior Plus Corp | Sixt SE vs. NMI Holdings | Sixt SE vs. Origin Agritech |
| PT Gudang vs. Chiba Bank | PT Gudang vs. Heartland Financial USA | PT Gudang vs. Pebblebrook Hotel Trust | PT Gudang vs. Playa Hotels Resorts |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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