Correlation Between Anugerah Kagum and Asiaplast Industries
Can any of the company-specific risk be diversified away by investing in both Anugerah Kagum and Asiaplast Industries 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 Asiaplast Industries 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 Asiaplast Industries Tbk, you can compare the effects of market volatilities on Anugerah Kagum and Asiaplast Industries 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 Asiaplast Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anugerah Kagum and Asiaplast Industries.
Diversification Opportunities for Anugerah Kagum and Asiaplast Industries
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anugerah and Asiaplast is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Anugerah Kagum Karya and Asiaplast Industries Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiaplast Industries Tbk 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 Asiaplast Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiaplast Industries Tbk has no effect on the direction of Anugerah Kagum i.e., Anugerah Kagum and Asiaplast Industries go up and down completely randomly.
Pair Corralation between Anugerah Kagum and Asiaplast Industries
Assuming the 90 days trading horizon Anugerah Kagum Karya is expected to under-perform the Asiaplast Industries. In addition to that, Anugerah Kagum is 1.03 times more volatile than Asiaplast Industries Tbk. It trades about -0.06 of its total potential returns per unit of risk. Asiaplast Industries Tbk is currently generating about 0.06 per unit of volatility. If you would invest 25,758 in Asiaplast Industries Tbk on August 28, 2024 and sell it today you would earn a total of 28,242 from holding Asiaplast Industries Tbk or generate 109.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Anugerah Kagum Karya vs. Asiaplast Industries Tbk
Performance |
| Timeline |
| Anugerah Kagum Karya |
| Asiaplast Industries Tbk |
Anugerah Kagum and Asiaplast Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anugerah Kagum and Asiaplast Industries
The main advantage of trading using opposite Anugerah Kagum and Asiaplast Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anugerah Kagum position performs unexpectedly, Asiaplast Industries 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 Asiaplast Industries will offset losses from the drop in Asiaplast Industries' long position.| Anugerah Kagum vs. Asiaplast Industries Tbk | Anugerah Kagum vs. Argha Karya Prima | Anugerah Kagum vs. Alumindo Light Metal | Anugerah Kagum vs. Asahimas Flat Glass |
| Asiaplast Industries vs. Kedaung Indah Can | Asiaplast Industries vs. Langgeng Makmur Industri | Asiaplast Industries vs. Kabelindo Murni Tbk | Asiaplast Industries vs. Mustika Ratu Tbk |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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