Correlation Between Adhi Commuter and Autopedia Sukses
Can any of the company-specific risk be diversified away by investing in both Adhi Commuter and Autopedia Sukses 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 Adhi Commuter and Autopedia Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adhi Commuter Properti and Autopedia Sukses Lestari, you can compare the effects of market volatilities on Adhi Commuter and Autopedia Sukses 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 Adhi Commuter with a short position of Autopedia Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adhi Commuter and Autopedia Sukses.
Diversification Opportunities for Adhi Commuter and Autopedia Sukses
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Adhi and Autopedia is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Adhi Commuter Properti and Autopedia Sukses Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopedia Sukses Lestari and Adhi Commuter 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 Adhi Commuter Properti are associated (or correlated) with Autopedia Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopedia Sukses Lestari has no effect on the direction of Adhi Commuter i.e., Adhi Commuter and Autopedia Sukses go up and down completely randomly.
Pair Corralation between Adhi Commuter and Autopedia Sukses
Assuming the 90 days trading horizon Adhi Commuter Properti is expected to under-perform the Autopedia Sukses. But the stock apears to be less risky and, when comparing its historical volatility, Adhi Commuter Properti is 2.16 times less risky than Autopedia Sukses. The stock trades about -0.04 of its potential returns per unit of risk. The Autopedia Sukses Lestari is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 13,400 in Autopedia Sukses Lestari on August 27, 2024 and sell it today you would lose (4,600) from holding Autopedia Sukses Lestari or give up 34.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adhi Commuter Properti vs. Autopedia Sukses Lestari
Performance |
| Timeline |
| Adhi Commuter Properti |
| Autopedia Sukses Lestari |
Adhi Commuter and Autopedia Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adhi Commuter and Autopedia Sukses
The main advantage of trading using opposite Adhi Commuter and Autopedia Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adhi Commuter position performs unexpectedly, Autopedia Sukses 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 Autopedia Sukses will offset losses from the drop in Autopedia Sukses' long position.| Adhi Commuter vs. Jaya Sukses Makmur | Adhi Commuter vs. Pollux Investasi Internasional | Adhi Commuter vs. Modernland Realty Ltd | Adhi Commuter vs. Suryamas Dutamakmur Tbk |
| Autopedia Sukses vs. Adaro Minerals Indonesia | Autopedia Sukses vs. Dharma Polimetal Tbk | Autopedia Sukses vs. Wir Asia Tbk | Autopedia Sukses vs. Adi Sarana Armada |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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