Correlation Between Akr Corporindo and Perusahaan Perkebunan
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and Perusahaan Perkebunan 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 Akr Corporindo and Perusahaan Perkebunan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and Perusahaan Perkebunan London, you can compare the effects of market volatilities on Akr Corporindo and Perusahaan Perkebunan 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 Akr Corporindo with a short position of Perusahaan Perkebunan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and Perusahaan Perkebunan.
Diversification Opportunities for Akr Corporindo and Perusahaan Perkebunan
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akr and Perusahaan is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and Perusahaan Perkebunan London in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perusahaan Perkebunan and Akr Corporindo 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 Akr Corporindo Tbk are associated (or correlated) with Perusahaan Perkebunan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perusahaan Perkebunan has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and Perusahaan Perkebunan go up and down completely randomly.
Pair Corralation between Akr Corporindo and Perusahaan Perkebunan
Assuming the 90 days trading horizon Akr Corporindo Tbk is expected to generate 0.95 times more return on investment than Perusahaan Perkebunan. However, Akr Corporindo Tbk is 1.05 times less risky than Perusahaan Perkebunan. It trades about -0.15 of its potential returns per unit of risk. Perusahaan Perkebunan London is currently generating about -0.29 per unit of risk. If you would invest 135,000 in Akr Corporindo Tbk on August 30, 2024 and sell it today you would lose (12,000) from holding Akr Corporindo Tbk or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akr Corporindo Tbk vs. Perusahaan Perkebunan London
Performance |
| Timeline |
| Akr Corporindo Tbk |
| Perusahaan Perkebunan |
Akr Corporindo and Perusahaan Perkebunan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akr Corporindo and Perusahaan Perkebunan
The main advantage of trading using opposite Akr Corporindo and Perusahaan Perkebunan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, Perusahaan Perkebunan 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 Perusahaan Perkebunan will offset losses from the drop in Perusahaan Perkebunan's long position.| Akr Corporindo vs. Charoen Pokphand Indonesia | Akr Corporindo vs. Indocement Tunggal Prakarsa | Akr Corporindo vs. Bumi Serpong Damai | Akr Corporindo vs. Jasa Marga Tbk |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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