Correlation Between Arthavest Tbk and Citra Putra
Can any of the company-specific risk be diversified away by investing in both Arthavest Tbk and Citra Putra 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 Arthavest Tbk and Citra Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arthavest Tbk and Citra Putra Realty, you can compare the effects of market volatilities on Arthavest Tbk and Citra Putra 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 Arthavest Tbk with a short position of Citra Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arthavest Tbk and Citra Putra.
Diversification Opportunities for Arthavest Tbk and Citra Putra
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arthavest and Citra is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Arthavest Tbk and Citra Putra Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Putra Realty and Arthavest Tbk 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 Arthavest Tbk are associated (or correlated) with Citra Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Putra Realty has no effect on the direction of Arthavest Tbk i.e., Arthavest Tbk and Citra Putra go up and down completely randomly.
Pair Corralation between Arthavest Tbk and Citra Putra
Assuming the 90 days trading horizon Arthavest Tbk is expected to generate 0.53 times more return on investment than Citra Putra. However, Arthavest Tbk is 1.89 times less risky than Citra Putra. It trades about 0.03 of its potential returns per unit of risk. Citra Putra Realty is currently generating about 0.01 per unit of risk. If you would invest 192,270 in Arthavest Tbk on August 31, 2024 and sell it today you would earn a total of 38,730 from holding Arthavest Tbk or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arthavest Tbk vs. Citra Putra Realty
Performance |
| Timeline |
| Arthavest Tbk |
| Citra Putra Realty |
Arthavest Tbk and Citra Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arthavest Tbk and Citra Putra
The main advantage of trading using opposite Arthavest Tbk and Citra Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arthavest Tbk position performs unexpectedly, Citra Putra 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 Citra Putra will offset losses from the drop in Citra Putra's long position.| Arthavest Tbk vs. Japfa Comfeed Indonesia | Arthavest Tbk vs. Charoen Pokphand Indonesia | Arthavest Tbk vs. Erajaya Swasembada Tbk | Arthavest Tbk vs. Indofood Cbp Sukses |
| Citra Putra vs. Jasa Armada Indonesia | Citra Putra vs. Cahayaputra Asa Keramik | Citra Putra vs. Campina Ice Cream | Citra Putra vs. Integra Indocabinet 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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