Correlation Between PT Cilacap and Sumber Alfaria
Can any of the company-specific risk be diversified away by investing in both PT Cilacap and Sumber Alfaria 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 PT Cilacap and Sumber Alfaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Cilacap Samudera and Sumber Alfaria Trijaya, you can compare the effects of market volatilities on PT Cilacap and Sumber Alfaria 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 PT Cilacap with a short position of Sumber Alfaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Cilacap and Sumber Alfaria.
Diversification Opportunities for PT Cilacap and Sumber Alfaria
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASHA and Sumber is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PT Cilacap Samudera and Sumber Alfaria Trijaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Alfaria Trijaya and PT Cilacap 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 PT Cilacap Samudera are associated (or correlated) with Sumber Alfaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Alfaria Trijaya has no effect on the direction of PT Cilacap i.e., PT Cilacap and Sumber Alfaria go up and down completely randomly.
Pair Corralation between PT Cilacap and Sumber Alfaria
Assuming the 90 days trading horizon PT Cilacap Samudera is expected to generate 2.61 times more return on investment than Sumber Alfaria. However, PT Cilacap is 2.61 times more volatile than Sumber Alfaria Trijaya. It trades about -0.09 of its potential returns per unit of risk. Sumber Alfaria Trijaya is currently generating about -0.4 per unit of risk. If you would invest 1,400 in PT Cilacap Samudera on August 29, 2024 and sell it today you would lose (200.00) from holding PT Cilacap Samudera or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Cilacap Samudera vs. Sumber Alfaria Trijaya
Performance |
| Timeline |
| PT Cilacap Samudera |
| Sumber Alfaria Trijaya |
PT Cilacap and Sumber Alfaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Cilacap and Sumber Alfaria
The main advantage of trading using opposite PT Cilacap and Sumber Alfaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Cilacap position performs unexpectedly, Sumber Alfaria 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 Sumber Alfaria will offset losses from the drop in Sumber Alfaria's long position.| PT Cilacap vs. Bank Central Asia | PT Cilacap vs. Bank Rakyat Indonesia | PT Cilacap vs. Bayan Resources Tbk | PT Cilacap vs. Bank Mandiri Persero |
| Sumber Alfaria vs. Elang Mahkota Teknologi | Sumber Alfaria vs. Ace Hardware Indonesia | Sumber Alfaria vs. BFI Finance Indonesia | Sumber Alfaria vs. Tower Bersama Infrastructure |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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