Correlation Between City Retail and PT Data
Can any of the company-specific risk be diversified away by investing in both City Retail and PT Data 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 City Retail and PT Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Retail Developments and PT Data Sinergitama, you can compare the effects of market volatilities on City Retail and PT Data 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 City Retail with a short position of PT Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Retail and PT Data.
Diversification Opportunities for City Retail and PT Data
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between City and ELIT is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding City Retail Developments and PT Data Sinergitama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Data Sinergitama and City Retail 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 City Retail Developments are associated (or correlated) with PT Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Data Sinergitama has no effect on the direction of City Retail i.e., City Retail and PT Data go up and down completely randomly.
Pair Corralation between City Retail and PT Data
If you would invest (100.00) in PT Data Sinergitama on October 10, 2024 and sell it today you would earn a total of 100.00 from holding PT Data Sinergitama or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
City Retail Developments vs. PT Data Sinergitama
Performance |
Timeline |
City Retail Developments |
PT Data Sinergitama |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
City Retail and PT Data Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with City Retail and PT Data
The main advantage of trading using opposite City Retail and PT Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Retail position performs unexpectedly, PT Data 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 Data will offset losses from the drop in PT Data's long position.City Retail vs. Metropolitan Land Tbk | City Retail vs. Bekasi Fajar Industrial | City Retail vs. Greenwood Sejahtera Tbk | City Retail vs. Metropolitan Kentjana Tbk |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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