Correlation Between PT Cilacap and Teladan Prima
Can any of the company-specific risk be diversified away by investing in both PT Cilacap and Teladan Prima 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 Teladan Prima 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 Teladan Prima Agro, you can compare the effects of market volatilities on PT Cilacap and Teladan Prima 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 Teladan Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Cilacap and Teladan Prima.
Diversification Opportunities for PT Cilacap and Teladan Prima
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASHA and Teladan is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding PT Cilacap Samudera and Teladan Prima Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladan Prima Agro 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 Teladan Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladan Prima Agro has no effect on the direction of PT Cilacap i.e., PT Cilacap and Teladan Prima go up and down completely randomly.
Pair Corralation between PT Cilacap and Teladan Prima
Assuming the 90 days trading horizon PT Cilacap Samudera is expected to under-perform the Teladan Prima. In addition to that, PT Cilacap is 4.87 times more volatile than Teladan Prima Agro. It trades about -0.11 of its total potential returns per unit of risk. Teladan Prima Agro is currently generating about -0.27 per unit of volatility. If you would invest 55,000 in Teladan Prima Agro on September 2, 2024 and sell it today you would lose (3,500) from holding Teladan Prima Agro or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Cilacap Samudera vs. Teladan Prima Agro
Performance |
| Timeline |
| PT Cilacap Samudera |
| Teladan Prima Agro |
PT Cilacap and Teladan Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Cilacap and Teladan Prima
The main advantage of trading using opposite PT Cilacap and Teladan Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Cilacap position performs unexpectedly, Teladan Prima 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 Teladan Prima will offset losses from the drop in Teladan Prima's 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 |
| Teladan Prima vs. Habco Trans Maritima | Teladan Prima vs. PT Cilacap Samudera | Teladan Prima vs. PT Sari Kreasi | Teladan Prima vs. Autopedia Sukses Lestari |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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