Correlation Between Acset Indonusa and Pratama Widya
Can any of the company-specific risk be diversified away by investing in both Acset Indonusa and Pratama Widya 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 Acset Indonusa and Pratama Widya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acset Indonusa Tbk and Pratama Widya Tbk, you can compare the effects of market volatilities on Acset Indonusa and Pratama Widya 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 Acset Indonusa with a short position of Pratama Widya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acset Indonusa and Pratama Widya.
Diversification Opportunities for Acset Indonusa and Pratama Widya
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Acset and Pratama is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Acset Indonusa Tbk and Pratama Widya Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pratama Widya Tbk and Acset Indonusa 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 Acset Indonusa Tbk are associated (or correlated) with Pratama Widya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pratama Widya Tbk has no effect on the direction of Acset Indonusa i.e., Acset Indonusa and Pratama Widya go up and down completely randomly.
Pair Corralation between Acset Indonusa and Pratama Widya
Assuming the 90 days trading horizon Acset Indonusa Tbk is expected to generate 4.02 times more return on investment than Pratama Widya. However, Acset Indonusa is 4.02 times more volatile than Pratama Widya Tbk. It trades about 0.17 of its potential returns per unit of risk. Pratama Widya Tbk is currently generating about -0.14 per unit of risk. If you would invest 8,700 in Acset Indonusa Tbk on October 23, 2024 and sell it today you would earn a total of 500.00 from holding Acset Indonusa Tbk or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acset Indonusa Tbk vs. Pratama Widya Tbk
Performance |
| Timeline |
| Acset Indonusa Tbk |
| Pratama Widya Tbk |
Acset Indonusa and Pratama Widya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acset Indonusa and Pratama Widya
The main advantage of trading using opposite Acset Indonusa and Pratama Widya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acset Indonusa position performs unexpectedly, Pratama Widya 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 Pratama Widya will offset losses from the drop in Pratama Widya's long position.| Acset Indonusa vs. Bekasi Fajar Industrial | Acset Indonusa vs. Nusa Raya Cipta | Acset Indonusa vs. Wijaya Karya Beton | Acset Indonusa vs. Agung Podomoro Land |
| Pratama Widya vs. Acset Indonusa Tbk | Pratama Widya vs. Surya Semesta Internusa | Pratama Widya vs. Totalindo Eka Persada | Pratama Widya vs. Wijaya Karya Bangunan |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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