Correlation Between PT Cilacap and PT Cerestar
Can any of the company-specific risk be diversified away by investing in both PT Cilacap and PT Cerestar 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 PT Cerestar 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 PT Cerestar Indonesia, you can compare the effects of market volatilities on PT Cilacap and PT Cerestar 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 PT Cerestar. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Cilacap and PT Cerestar.
Diversification Opportunities for PT Cilacap and PT Cerestar
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ASHA and TRGU is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding PT Cilacap Samudera and PT Cerestar Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Cerestar Indonesia 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 PT Cerestar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Cerestar Indonesia has no effect on the direction of PT Cilacap i.e., PT Cilacap and PT Cerestar go up and down completely randomly.
Pair Corralation between PT Cilacap and PT Cerestar
Assuming the 90 days trading horizon PT Cilacap Samudera is expected to under-perform the PT Cerestar. In addition to that, PT Cilacap is 4.2 times more volatile than PT Cerestar Indonesia. It trades about -0.06 of its total potential returns per unit of risk. PT Cerestar Indonesia is currently generating about -0.04 per unit of volatility. If you would invest 19,600 in PT Cerestar Indonesia on November 28, 2024 and sell it today you would lose (200.00) from holding PT Cerestar Indonesia or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Cilacap Samudera vs. PT Cerestar Indonesia
Performance |
| Timeline |
| PT Cilacap Samudera |
| PT Cerestar Indonesia |
PT Cilacap and PT Cerestar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Cilacap and PT Cerestar
The main advantage of trading using opposite PT Cilacap and PT Cerestar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Cilacap position performs unexpectedly, PT Cerestar 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 PT Cerestar will offset losses from the drop in PT Cerestar's long position.| PT Cilacap vs. PT Dewi Shri | PT Cilacap vs. Adaro Minerals Indonesia | PT Cilacap vs. Autopedia Sukses Lestari | PT Cilacap vs. Wir Asia Tbk |
| PT Cerestar vs. Autopedia Sukses Lestari | PT Cerestar vs. PT Dewi Shri | PT Cerestar vs. PT Cilacap Samudera | PT Cerestar vs. PT Sari Kreasi |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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