Correlation Between Argha Karya and PT Citra
Can any of the company-specific risk be diversified away by investing in both Argha Karya and PT Citra 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 Argha Karya and PT Citra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argha Karya Prima and PT Citra Tubindo, you can compare the effects of market volatilities on Argha Karya and PT Citra 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 Argha Karya with a short position of PT Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argha Karya and PT Citra.
Diversification Opportunities for Argha Karya and PT Citra
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Argha and CTBN is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Argha Karya Prima and PT Citra Tubindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Citra Tubindo and Argha Karya 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 Argha Karya Prima are associated (or correlated) with PT Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Citra Tubindo has no effect on the direction of Argha Karya i.e., Argha Karya and PT Citra go up and down completely randomly.
Pair Corralation between Argha Karya and PT Citra
Assuming the 90 days trading horizon Argha Karya Prima is expected to under-perform the PT Citra. But the stock apears to be less risky and, when comparing its historical volatility, Argha Karya Prima is 3.82 times less risky than PT Citra. The stock trades about -0.21 of its potential returns per unit of risk. The PT Citra Tubindo is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 234,000 in PT Citra Tubindo on August 27, 2024 and sell it today you would earn a total of 15,000 from holding PT Citra Tubindo or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argha Karya Prima vs. PT Citra Tubindo
Performance |
| Timeline |
| Argha Karya Prima |
| PT Citra Tubindo |
Argha Karya and PT Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argha Karya and PT Citra
The main advantage of trading using opposite Argha Karya and PT Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argha Karya position performs unexpectedly, PT Citra 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 PT Citra will offset losses from the drop in PT Citra's long position.| Argha Karya vs. Asiaplast Industries Tbk | Argha Karya vs. Alumindo Light Metal | Argha Karya vs. Berlina Tbk | Argha Karya vs. Anugerah Kagum Karya |
| PT Citra vs. Betonjaya Manunggal Tbk | PT Citra vs. Duta Pertiwi Nusantara | PT Citra vs. Argha Karya Prima | PT Citra vs. Alumindo Light Metal |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| 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 | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |