Correlation Between Aneka Gas and Panca Budi
Can any of the company-specific risk be diversified away by investing in both Aneka Gas and Panca Budi 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 Aneka Gas and Panca Budi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Gas Industri and Panca Budi Idaman, you can compare the effects of market volatilities on Aneka Gas and Panca Budi 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 Aneka Gas with a short position of Panca Budi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Gas and Panca Budi.
Diversification Opportunities for Aneka Gas and Panca Budi
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aneka and Panca is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Gas Industri and Panca Budi Idaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panca Budi Idaman and Aneka Gas 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 Aneka Gas Industri are associated (or correlated) with Panca Budi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panca Budi Idaman has no effect on the direction of Aneka Gas i.e., Aneka Gas and Panca Budi go up and down completely randomly.
Pair Corralation between Aneka Gas and Panca Budi
Assuming the 90 days trading horizon Aneka Gas Industri is expected to under-perform the Panca Budi. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Gas Industri is 2.89 times less risky than Panca Budi. The stock trades about -0.17 of its potential returns per unit of risk. The Panca Budi Idaman is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 46,000 in Panca Budi Idaman on August 28, 2024 and sell it today you would earn a total of 6,000 from holding Panca Budi Idaman or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Gas Industri vs. Panca Budi Idaman
Performance |
| Timeline |
| Aneka Gas Industri |
| Panca Budi Idaman |
Aneka Gas and Panca Budi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Gas and Panca Budi
The main advantage of trading using opposite Aneka Gas and Panca Budi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Gas position performs unexpectedly, Panca Budi 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 Panca Budi will offset losses from the drop in Panca Budi's long position.| Aneka Gas vs. Surya Esa Perkasa | Aneka Gas vs. Elang Mahkota Teknologi | Aneka Gas vs. Merdeka Copper Gold | Aneka Gas vs. Saratoga Investama Sedaya |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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