Correlation Between Alumindo Light and Personel Alih
Can any of the company-specific risk be diversified away by investing in both Alumindo Light and Personel Alih 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 Personel Alih 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 Personel Alih Daya, you can compare the effects of market volatilities on Alumindo Light and Personel Alih 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 Personel Alih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alumindo Light and Personel Alih.
Diversification Opportunities for Alumindo Light and Personel Alih
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alumindo and Personel is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Alumindo Light Metal and Personel Alih Daya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personel Alih Daya 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 Personel Alih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personel Alih Daya has no effect on the direction of Alumindo Light i.e., Alumindo Light and Personel Alih go up and down completely randomly.
Pair Corralation between Alumindo Light and Personel Alih
If you would invest 7,400 in Alumindo Light Metal on September 5, 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 Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alumindo Light Metal vs. Personel Alih Daya
Performance |
| Timeline |
| Alumindo Light Metal |
| Personel Alih Daya |
Alumindo Light and Personel Alih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alumindo Light and Personel Alih
The main advantage of trading using opposite Alumindo Light and Personel Alih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alumindo Light position performs unexpectedly, Personel Alih 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 Personel Alih will offset losses from the drop in Personel Alih'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 |
| Personel Alih vs. PT Surya Pertiwi | Personel Alih vs. Satria Mega Kencana | Personel Alih vs. Multifiling Mitra Indonesia | Personel Alih vs. Royal Prima PT |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |