Correlation Between PT Sarana and Proximus
Can any of the company-specific risk be diversified away by investing in both PT Sarana and Proximus 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 PT Sarana and Proximus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sarana Menara and Proximus NV ADR, you can compare the effects of market volatilities on PT Sarana and Proximus 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 PT Sarana with a short position of Proximus. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sarana and Proximus.
Diversification Opportunities for PT Sarana and Proximus
Poor diversification
The 3 months correlation between SMNUF and Proximus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding PT Sarana Menara and Proximus NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximus NV ADR and PT Sarana 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 PT Sarana Menara are associated (or correlated) with Proximus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximus NV ADR has no effect on the direction of PT Sarana i.e., PT Sarana and Proximus go up and down completely randomly.
Pair Corralation between PT Sarana and Proximus
If you would invest 110.00 in Proximus NV ADR on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Proximus NV ADR or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Sarana Menara vs. Proximus NV ADR
Performance |
| Timeline |
| PT Sarana Menara |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Proximus NV ADR |
PT Sarana and Proximus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sarana and Proximus
The main advantage of trading using opposite PT Sarana and Proximus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sarana position performs unexpectedly, Proximus 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 Proximus will offset losses from the drop in Proximus' long position.| PT Sarana vs. Proximus NV ADR | PT Sarana vs. Singapore Telecommunications Limited | PT Sarana vs. Telstra Limited | PT Sarana vs. MTN Group Ltd |
| Proximus vs. Singapore Telecommunications Limited | Proximus vs. Telstra Limited | Proximus vs. MTN Group Ltd | Proximus vs. Tele2 AB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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