Correlation Between SCANDMEDICAL SOLDK-040 and PT Global

Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 and PT Global 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 SCANDMEDICAL SOLDK-040 and PT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and PT Global Mediacom, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 and PT Global 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 SCANDMEDICAL SOLDK-040 with a short position of PT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and PT Global.

Diversification Opportunities for SCANDMEDICAL SOLDK-040 and PT Global

0.66

Correlation Coefficient

SCANDMEDICAL SOLDK-040  PT Global

Poor diversification

The 3 months correlation between SCANDMEDICAL and 06L is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and PT Global Mediacom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Global Mediacom and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 are associated (or correlated) with PT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Global Mediacom has no effect on the direction of SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and PT Global go up and down completely randomly.

Pair Corralation between SCANDMEDICAL SOLDK-040 and PT Global

Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to generate 0.82 times more return on investment than PT Global. However, SCANDMEDICAL SOLDK 040 is 1.22 times less risky than PT Global. It trades about -0.01 of its potential returns per unit of risk. PT Global Mediacom is currently generating about -0.09 per unit of risk. If you would invest  79.00  in SCANDMEDICAL SOLDK 040 on October 7, 2024 and sell it today you would lose (3.00) from holding SCANDMEDICAL SOLDK 040 or give up 3.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SCANDMEDICAL SOLDK 040  vs.  PT Global Mediacom

SCANDMEDICAL SOLDK 040

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SCANDMEDICAL SOLDK 040 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SCANDMEDICAL SOLDK-040 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

PT Global Mediacom

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Global Mediacom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SCANDMEDICAL SOLDK-040 and PT Global

The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and PT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 position performs unexpectedly, PT Global 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 Global will offset losses from the drop in PT Global's long position.

The idea behind SCANDMEDICAL SOLDK 040 and PT Global Mediacom 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.