Correlation Between Abm Investama and Nusa Raya
Can any of the company-specific risk be diversified away by investing in both Abm Investama and Nusa Raya 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 Abm Investama and Nusa Raya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abm Investama Tbk and Nusa Raya Cipta, you can compare the effects of market volatilities on Abm Investama and Nusa Raya 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 Abm Investama with a short position of Nusa Raya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abm Investama and Nusa Raya.
Diversification Opportunities for Abm Investama and Nusa Raya
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Abm and Nusa is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Abm Investama Tbk and Nusa Raya Cipta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusa Raya Cipta and Abm Investama 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 Abm Investama Tbk are associated (or correlated) with Nusa Raya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusa Raya Cipta has no effect on the direction of Abm Investama i.e., Abm Investama and Nusa Raya go up and down completely randomly.
Pair Corralation between Abm Investama and Nusa Raya
Assuming the 90 days trading horizon Abm Investama Tbk is expected to under-perform the Nusa Raya. But the stock apears to be less risky and, when comparing its historical volatility, Abm Investama Tbk is 1.31 times less risky than Nusa Raya. The stock trades about -0.27 of its potential returns per unit of risk. The Nusa Raya Cipta is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 39,600 in Nusa Raya Cipta on August 25, 2024 and sell it today you would lose (3,400) from holding Nusa Raya Cipta or give up 8.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abm Investama Tbk vs. Nusa Raya Cipta
Performance |
| Timeline |
| Abm Investama Tbk |
| Nusa Raya Cipta |
Abm Investama and Nusa Raya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abm Investama and Nusa Raya
The main advantage of trading using opposite Abm Investama and Nusa Raya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abm Investama position performs unexpectedly, Nusa Raya 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 Nusa Raya will offset losses from the drop in Nusa Raya's long position.| Abm Investama vs. Petrosea Tbk | Abm Investama vs. Harum Energy Tbk | Abm Investama vs. Perdana Karya Perkasa | Abm Investama vs. Samindo Resources Tbk |
| Nusa Raya vs. Total Bangun Persada | Nusa Raya vs. Surya Semesta Internusa | Nusa Raya vs. Acset Indonusa Tbk | Nusa Raya vs. Mitra Pinasthika Mustika |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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