Correlation Between APA and PT Perusahaan
Can any of the company-specific risk be diversified away by investing in both APA and PT Perusahaan 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 APA and PT Perusahaan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APA Group and PT Perusahaan Gas, you can compare the effects of market volatilities on APA and PT Perusahaan 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 APA with a short position of PT Perusahaan. Check out your portfolio center. Please also check ongoing floating volatility patterns of APA and PT Perusahaan.
Diversification Opportunities for APA and PT Perusahaan
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between APA and PPAAF is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding APA Group and PT Perusahaan Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Perusahaan Gas and APA 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 APA Group are associated (or correlated) with PT Perusahaan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Perusahaan Gas has no effect on the direction of APA i.e., APA and PT Perusahaan go up and down completely randomly.
Pair Corralation between APA and PT Perusahaan
If you would invest 400.00 in APA Group on November 1, 2024 and sell it today you would earn a total of 20.00 from holding APA Group or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
APA Group vs. PT Perusahaan Gas
Performance |
| Timeline |
| APA Group |
| PT Perusahaan Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
APA and PT Perusahaan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APA and PT Perusahaan
The main advantage of trading using opposite APA and PT Perusahaan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APA position performs unexpectedly, PT Perusahaan 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 PT Perusahaan will offset losses from the drop in PT Perusahaan's long position.The idea behind APA Group and PT Perusahaan Gas pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| PT Perusahaan vs. ENN Energy Holdings | PT Perusahaan vs. APA Group | PT Perusahaan vs. EverGen Infrastructure Corp | PT Perusahaan vs. Beijing Gas Blue |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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