Correlation Between Asahimas Flat and Argha Karya
Can any of the company-specific risk be diversified away by investing in both Asahimas Flat and Argha Karya 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 Asahimas Flat and Argha Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asahimas Flat Glass and Argha Karya Prima, you can compare the effects of market volatilities on Asahimas Flat and Argha Karya 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 Asahimas Flat with a short position of Argha Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asahimas Flat and Argha Karya.
Diversification Opportunities for Asahimas Flat and Argha Karya
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asahimas and Argha is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Asahimas Flat Glass and Argha Karya Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argha Karya Prima and Asahimas Flat 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 Asahimas Flat Glass are associated (or correlated) with Argha Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argha Karya Prima has no effect on the direction of Asahimas Flat i.e., Asahimas Flat and Argha Karya go up and down completely randomly.
Pair Corralation between Asahimas Flat and Argha Karya
Assuming the 90 days trading horizon Asahimas Flat Glass is expected to generate 0.24 times more return on investment than Argha Karya. However, Asahimas Flat Glass is 4.14 times less risky than Argha Karya. It trades about -0.29 of its potential returns per unit of risk. Argha Karya Prima is currently generating about -0.27 per unit of risk. If you would invest 473,000 in Asahimas Flat Glass on September 1, 2024 and sell it today you would lose (13,000) from holding Asahimas Flat Glass or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asahimas Flat Glass vs. Argha Karya Prima
Performance |
| Timeline |
| Asahimas Flat Glass |
| Argha Karya Prima |
Asahimas Flat and Argha Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asahimas Flat and Argha Karya
The main advantage of trading using opposite Asahimas Flat and Argha Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asahimas Flat position performs unexpectedly, Argha Karya 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 Argha Karya will offset losses from the drop in Argha Karya's long position.| Asahimas Flat vs. Matahari Department Store | Asahimas Flat vs. Multi Medika Internasional | Asahimas Flat vs. Visi Media Asia | Asahimas Flat vs. Bayan Resources Tbk |
| Argha Karya vs. Perusahaan Gas Negara | Argha Karya vs. Telkom Indonesia Tbk | Argha Karya vs. Mitra Pinasthika Mustika | Argha Karya vs. Jakarta Int Hotels |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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