Correlation Between Anugerah Kagum and Argha Karya
Can any of the company-specific risk be diversified away by investing in both Anugerah Kagum and Argha Karya 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 Anugerah Kagum and Argha Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anugerah Kagum Karya and Argha Karya Prima, you can compare the effects of market volatilities on Anugerah Kagum and Argha Karya 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 Anugerah Kagum with a short position of Argha Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anugerah Kagum and Argha Karya.
Diversification Opportunities for Anugerah Kagum and Argha Karya
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anugerah and Argha is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Anugerah Kagum Karya and Argha Karya Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argha Karya Prima and Anugerah Kagum 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 Anugerah Kagum Karya are associated (or correlated) with Argha Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argha Karya Prima has no effect on the direction of Anugerah Kagum i.e., Anugerah Kagum and Argha Karya go up and down completely randomly.
Pair Corralation between Anugerah Kagum and Argha Karya
Assuming the 90 days trading horizon Anugerah Kagum Karya is expected to generate 2.06 times more return on investment than Argha Karya. However, Anugerah Kagum is 2.06 times more volatile than Argha Karya Prima. It trades about 0.45 of its potential returns per unit of risk. Argha Karya Prima is currently generating about -0.14 per unit of risk. If you would invest 1,200 in Anugerah Kagum Karya on October 22, 2024 and sell it today you would earn a total of 400.00 from holding Anugerah Kagum Karya or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anugerah Kagum Karya vs. Argha Karya Prima
Performance |
| Timeline |
| Anugerah Kagum Karya |
| Argha Karya Prima |
Anugerah Kagum and Argha Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anugerah Kagum and Argha Karya
The main advantage of trading using opposite Anugerah Kagum and Argha Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anugerah Kagum position performs unexpectedly, Argha Karya 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 Argha Karya will offset losses from the drop in Argha Karya's long position.| Anugerah Kagum vs. Asiaplast Industries Tbk | Anugerah Kagum vs. Argha Karya Prima | Anugerah Kagum vs. Alumindo Light Metal | Anugerah Kagum vs. Berlina Tbk |
| Argha Karya vs. Asiaplast Industries Tbk | Argha Karya vs. Alumindo Light Metal | Argha Karya vs. Berlina Tbk | Argha Karya vs. Anugerah Kagum Karya |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |