Correlation Between INDO-RAMA SYNTHETIC and Pinduoduo

Can any of the company-specific risk be diversified away by investing in both INDO-RAMA SYNTHETIC and Pinduoduo 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 INDO-RAMA SYNTHETIC and Pinduoduo into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INDO RAMA SYNTHETIC and Pinduoduo, you can compare the effects of market volatilities on INDO-RAMA SYNTHETIC and Pinduoduo 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 INDO-RAMA SYNTHETIC with a short position of Pinduoduo. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDO-RAMA SYNTHETIC and Pinduoduo.

Diversification Opportunities for INDO-RAMA SYNTHETIC and Pinduoduo

0.0

Correlation Coefficient

INDO-RAMA SYNTHETIC  Pinduoduo

Pay attention - limited upside

The 3 months correlation between INDO-RAMA and Pinduoduo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INDO RAMA SYNTHETIC and Pinduoduo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinduoduo and INDO-RAMA SYNTHETIC 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 INDO RAMA SYNTHETIC are associated (or correlated) with Pinduoduo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinduoduo has no effect on the direction of INDO-RAMA SYNTHETIC i.e., INDO-RAMA SYNTHETIC and Pinduoduo go up and down completely randomly.

Pair Corralation between INDO-RAMA SYNTHETIC and Pinduoduo

If you would invest  8,600  in Pinduoduo on September 14, 2024 and sell it today you would earn a total of  1,240  from holding Pinduoduo or generate 14.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

INDO RAMA SYNTHETIC  vs.  Pinduoduo

INDO RAMA SYNTHETIC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INDO RAMA SYNTHETIC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, INDO-RAMA SYNTHETIC is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pinduoduo

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pinduoduo are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Pinduoduo reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with INDO-RAMA SYNTHETIC and Pinduoduo

The main advantage of trading using opposite INDO-RAMA SYNTHETIC and Pinduoduo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDO-RAMA SYNTHETIC position performs unexpectedly, Pinduoduo 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 Pinduoduo will offset losses from the drop in Pinduoduo's long position.

The idea behind INDO RAMA SYNTHETIC and Pinduoduo pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.