Correlation Between Asahimas Flat and Alumindo Light
Can any of the company-specific risk be diversified away by investing in both Asahimas Flat and Alumindo Light 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 Alumindo Light 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 Alumindo Light Metal, you can compare the effects of market volatilities on Asahimas Flat and Alumindo Light 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 Alumindo Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asahimas Flat and Alumindo Light.
Diversification Opportunities for Asahimas Flat and Alumindo Light
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asahimas and Alumindo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Asahimas Flat Glass and Alumindo Light Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumindo Light Metal 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 Alumindo Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumindo Light Metal has no effect on the direction of Asahimas Flat i.e., Asahimas Flat and Alumindo Light go up and down completely randomly.
Pair Corralation between Asahimas Flat and Alumindo Light
If you would invest 435,000 in Asahimas Flat Glass on November 5, 2024 and sell it today you would earn a total of 4,000 from holding Asahimas Flat Glass or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Asahimas Flat Glass vs. Alumindo Light Metal
Performance |
| Timeline |
| Asahimas Flat Glass |
| Alumindo Light Metal |
Asahimas Flat and Alumindo Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asahimas Flat and Alumindo Light
The main advantage of trading using opposite Asahimas Flat and Alumindo Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asahimas Flat position performs unexpectedly, Alumindo Light 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 Alumindo Light will offset losses from the drop in Alumindo Light's long position.| Asahimas Flat vs. Arwana Citramulia Tbk | Asahimas Flat vs. Asiaplast Industries Tbk | Asahimas Flat vs. Argha Karya Prima | Asahimas Flat vs. Astra Graphia Tbk |
| Alumindo Light vs. Asiaplast Industries Tbk | Alumindo Light vs. Argha Karya Prima | Alumindo Light vs. Indal Aluminium Industry | Alumindo Light vs. Alakasa Industrindo Tbk |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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