Correlation Between Shield On and Personel Alih
Can any of the company-specific risk be diversified away by investing in both Shield On and Personel Alih 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 Shield On and Personel Alih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shield On Service and Personel Alih Daya, you can compare the effects of market volatilities on Shield On and Personel Alih 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 Shield On with a short position of Personel Alih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shield On and Personel Alih.
Diversification Opportunities for Shield On and Personel Alih
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shield and Personel is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shield On Service and Personel Alih Daya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personel Alih Daya and Shield On 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 Shield On Service are associated (or correlated) with Personel Alih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personel Alih Daya has no effect on the direction of Shield On i.e., Shield On and Personel Alih go up and down completely randomly.
Pair Corralation between Shield On and Personel Alih
Assuming the 90 days trading horizon Shield On Service is expected to under-perform the Personel Alih. In addition to that, Shield On is 1.42 times more volatile than Personel Alih Daya. It trades about -0.08 of its total potential returns per unit of risk. Personel Alih Daya is currently generating about -0.09 per unit of volatility. If you would invest 1,400 in Personel Alih Daya on August 30, 2024 and sell it today you would lose (200.00) from holding Personel Alih Daya or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shield On Service vs. Personel Alih Daya
Performance |
| Timeline |
| Shield On Service |
| Personel Alih Daya |
Shield On and Personel Alih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shield On and Personel Alih
The main advantage of trading using opposite Shield On and Personel Alih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shield On position performs unexpectedly, Personel Alih 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 Personel Alih will offset losses from the drop in Personel Alih's long position.| Shield On vs. PT Surya Pertiwi | Shield On vs. Satria Mega Kencana | Shield On vs. Multifiling Mitra Indonesia | Shield On vs. Royal Prima PT |
| Personel Alih vs. PT Surya Pertiwi | Personel Alih vs. Satria Mega Kencana | Personel Alih vs. Multifiling Mitra Indonesia | Personel Alih vs. Royal Prima PT |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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