Correlation Between Adaro Minerals and Autopedia Sukses
Can any of the company-specific risk be diversified away by investing in both Adaro Minerals 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 Adaro Minerals and Autopedia Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adaro Minerals Indonesia and Autopedia Sukses Lestari, you can compare the effects of market volatilities on Adaro Minerals 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 Adaro Minerals with a short position of Autopedia Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaro Minerals and Autopedia Sukses.
Diversification Opportunities for Adaro Minerals and Autopedia Sukses
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Adaro and Autopedia is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Adaro Minerals Indonesia 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 Adaro Minerals 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 Adaro Minerals Indonesia 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 Adaro Minerals i.e., Adaro Minerals and Autopedia Sukses go up and down completely randomly.
Pair Corralation between Adaro Minerals and Autopedia Sukses
Assuming the 90 days trading horizon Adaro Minerals Indonesia is expected to generate 1.55 times more return on investment than Autopedia Sukses. However, Adaro Minerals is 1.55 times more volatile than Autopedia Sukses Lestari. It trades about -0.16 of its potential returns per unit of risk. Autopedia Sukses Lestari is currently generating about -0.47 per unit of risk. If you would invest 144,000 in Adaro Minerals Indonesia on August 24, 2024 and sell it today you would lose (12,500) from holding Adaro Minerals Indonesia or give up 8.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adaro Minerals Indonesia vs. Autopedia Sukses Lestari
Performance |
| Timeline |
| Adaro Minerals Indonesia |
| Autopedia Sukses Lestari |
Adaro Minerals and Autopedia Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaro Minerals and Autopedia Sukses
The main advantage of trading using opposite Adaro Minerals and Autopedia Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaro Minerals 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.| Adaro Minerals vs. Bank Artos Indonesia | Adaro Minerals vs. GoTo Gojek Tokopedia | Adaro Minerals vs. Elang Mahkota Teknologi | Adaro Minerals vs. PT Bukalapak |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |