Correlation Between Verena Multi and Pool Advista
Can any of the company-specific risk be diversified away by investing in both Verena Multi and Pool Advista 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 Verena Multi and Pool Advista into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verena Multi Finance and Pool Advista Finance, you can compare the effects of market volatilities on Verena Multi and Pool Advista 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 Verena Multi with a short position of Pool Advista. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verena Multi and Pool Advista.
Diversification Opportunities for Verena Multi and Pool Advista
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Verena and Pool is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Verena Multi Finance and Pool Advista Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pool Advista Finance and Verena Multi 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 Verena Multi Finance are associated (or correlated) with Pool Advista. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pool Advista Finance has no effect on the direction of Verena Multi i.e., Verena Multi and Pool Advista go up and down completely randomly.
Pair Corralation between Verena Multi and Pool Advista
Assuming the 90 days trading horizon Verena Multi Finance is expected to generate 0.42 times more return on investment than Pool Advista. However, Verena Multi Finance is 2.4 times less risky than Pool Advista. It trades about -0.02 of its potential returns per unit of risk. Pool Advista Finance is currently generating about -0.16 per unit of risk. If you would invest 9,000 in Verena Multi Finance on August 27, 2024 and sell it today you would lose (100.00) from holding Verena Multi Finance or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Verena Multi Finance vs. Pool Advista Finance
Performance |
| Timeline |
| Verena Multi Finance |
| Pool Advista Finance |
Verena Multi and Pool Advista Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verena Multi and Pool Advista
The main advantage of trading using opposite Verena Multi and Pool Advista positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verena Multi position performs unexpectedly, Pool Advista 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 Pool Advista will offset losses from the drop in Pool Advista's long position.| Verena Multi vs. Wahana Ottomitra Multiartha | Verena Multi vs. Trust Finance Indonesia | Verena Multi vs. Yulie Sekurindo Tbk | Verena Multi vs. Bank Woori Saudara |
| Pool Advista vs. Malacca Trust Wuwungan | Pool Advista vs. Sidomulyo Selaras Tbk | Pool Advista vs. Pratama Abadi Nusa | Pool Advista vs. Prima Cakrawala Abadi |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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