Correlation Between Alumindo Light and First Media
Can any of the company-specific risk be diversified away by investing in both Alumindo Light and First Media 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 Alumindo Light and First Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alumindo Light Metal and First Media Tbk, you can compare the effects of market volatilities on Alumindo Light and First Media 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 Alumindo Light with a short position of First Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alumindo Light and First Media.
Diversification Opportunities for Alumindo Light and First Media
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alumindo and First is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Alumindo Light Metal and First Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Media Tbk and Alumindo Light 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 Alumindo Light Metal are associated (or correlated) with First Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Media Tbk has no effect on the direction of Alumindo Light i.e., Alumindo Light and First Media go up and down completely randomly.
Pair Corralation between Alumindo Light and First Media
If you would invest 7,400 in Alumindo Light Metal on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Alumindo Light Metal or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Alumindo Light Metal vs. First Media Tbk
Performance |
| Timeline |
| Alumindo Light Metal |
| First Media Tbk |
Alumindo Light and First Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alumindo Light and First Media
The main advantage of trading using opposite Alumindo Light and First Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alumindo Light position performs unexpectedly, First Media 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 First Media will offset losses from the drop in First Media's long position.| Alumindo Light vs. Asiaplast Industries Tbk | Alumindo Light vs. Argha Karya Prima | Alumindo Light vs. Indal Aluminium Industry | Alumindo Light vs. Alakasa Industrindo Tbk |
| First Media vs. Fast Food Indonesia | First Media vs. Garudafood Putra Putri | First Media vs. HK Metals Utama | First Media 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |