Correlation Between PT Cilacap and Autopedia Sukses
Can any of the company-specific risk be diversified away by investing in both PT Cilacap and Autopedia Sukses 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 Autopedia Sukses 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 Autopedia Sukses Lestari, you can compare the effects of market volatilities on PT Cilacap and Autopedia Sukses 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 Autopedia Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Cilacap and Autopedia Sukses.
Diversification Opportunities for PT Cilacap and Autopedia Sukses
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ASHA and Autopedia is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT Cilacap Samudera and Autopedia Sukses Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopedia Sukses Lestari 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 Autopedia Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopedia Sukses Lestari has no effect on the direction of PT Cilacap i.e., PT Cilacap and Autopedia Sukses go up and down completely randomly.
Pair Corralation between PT Cilacap and Autopedia Sukses
Assuming the 90 days trading horizon PT Cilacap Samudera is expected to generate 3.3 times more return on investment than Autopedia Sukses. However, PT Cilacap is 3.3 times more volatile than Autopedia Sukses Lestari. It trades about -0.11 of its potential returns per unit of risk. Autopedia Sukses Lestari is currently generating about -0.52 per unit of risk. If you would invest 1,400 in PT Cilacap Samudera on September 2, 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Cilacap Samudera vs. Autopedia Sukses Lestari
Performance |
| Timeline |
| PT Cilacap Samudera |
| Autopedia Sukses Lestari |
PT Cilacap and Autopedia Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Cilacap and Autopedia Sukses
The main advantage of trading using opposite PT Cilacap and Autopedia Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Cilacap position performs unexpectedly, Autopedia Sukses 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 Autopedia Sukses will offset losses from the drop in Autopedia Sukses' long position.| PT Cilacap vs. PT Dewi Shri | PT Cilacap vs. PT Data Sinergitama | PT Cilacap vs. PAM Mineral Tbk | PT Cilacap vs. Autopedia Sukses Lestari |
| Autopedia Sukses vs. Adaro Minerals Indonesia | Autopedia Sukses vs. Dharma Polimetal Tbk | Autopedia Sukses vs. Wir Asia Tbk | Autopedia Sukses vs. Adi Sarana Armada |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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