Correlation Between Perusahaan Perseroan and SPDR Gold
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and SPDR Gold 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 Perusahaan Perseroan and SPDR Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perusahaan Perseroan PT and SPDR Gold Shares, you can compare the effects of market volatilities on Perusahaan Perseroan and SPDR Gold 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 Perusahaan Perseroan with a short position of SPDR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and SPDR Gold.
Diversification Opportunities for Perusahaan Perseroan and SPDR Gold
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perusahaan and SPDR is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and SPDR Gold Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold Shares and Perusahaan Perseroan 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 Perusahaan Perseroan PT are associated (or correlated) with SPDR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Gold Shares has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and SPDR Gold go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and SPDR Gold
Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the SPDR Gold. In addition to that, Perusahaan Perseroan is 3.02 times more volatile than SPDR Gold Shares. It trades about -0.09 of its total potential returns per unit of risk. SPDR Gold Shares is currently generating about 0.1 per unit of volatility. If you would invest 21,830 in SPDR Gold Shares on September 23, 2024 and sell it today you would earn a total of 1,400 from holding SPDR Gold Shares or generate 6.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 96.97% |
Values | Daily Returns |
Perusahaan Perseroan PT vs. SPDR Gold Shares
Performance |
Timeline |
Perusahaan Perseroan |
SPDR Gold Shares |
Perusahaan Perseroan and SPDR Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Perusahaan Perseroan and SPDR Gold
The main advantage of trading using opposite Perusahaan Perseroan and SPDR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan position performs unexpectedly, SPDR Gold 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 SPDR Gold will offset losses from the drop in SPDR Gold's long position.Perusahaan Perseroan vs. T Mobile | Perusahaan Perseroan vs. China Mobile Limited | Perusahaan Perseroan vs. Verizon Communications | Perusahaan Perseroan vs. ATT Inc |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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