Correlation Between Argo Pantes and Ever Shine
Can any of the company-specific risk be diversified away by investing in both Argo Pantes and Ever Shine 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 Argo Pantes and Ever Shine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Pantes Tbk and Ever Shine Textile, you can compare the effects of market volatilities on Argo Pantes and Ever Shine 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 Argo Pantes with a short position of Ever Shine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Pantes and Ever Shine.
Diversification Opportunities for Argo Pantes and Ever Shine
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Argo and Ever is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Argo Pantes Tbk and Ever Shine Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Shine Textile and Argo Pantes 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 Argo Pantes Tbk are associated (or correlated) with Ever Shine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Shine Textile has no effect on the direction of Argo Pantes i.e., Argo Pantes and Ever Shine go up and down completely randomly.
Pair Corralation between Argo Pantes and Ever Shine
Assuming the 90 days trading horizon Argo Pantes Tbk is expected to generate 1.38 times more return on investment than Ever Shine. However, Argo Pantes is 1.38 times more volatile than Ever Shine Textile. It trades about 0.03 of its potential returns per unit of risk. Ever Shine Textile is currently generating about 0.01 per unit of risk. If you would invest 86,000 in Argo Pantes Tbk on August 25, 2024 and sell it today you would earn a total of 14,000 from holding Argo Pantes Tbk or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Pantes Tbk vs. Ever Shine Textile
Performance |
| Timeline |
| Argo Pantes Tbk |
| Ever Shine Textile |
Argo Pantes and Ever Shine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Pantes and Ever Shine
The main advantage of trading using opposite Argo Pantes and Ever Shine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Pantes position performs unexpectedly, Ever Shine 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 Ever Shine will offset losses from the drop in Ever Shine's long position.| Argo Pantes vs. Sepatu Bata Tbk | Argo Pantes vs. Ever Shine Textile | Argo Pantes vs. Eratex Djaja Tbk | Argo Pantes vs. PT Century Textile |
| Ever Shine vs. Eratex Djaja Tbk | Ever Shine vs. Goodyear Indonesia Tbk | Ever Shine vs. PT Century Textile | Ever Shine vs. Sepatu Bata 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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