Correlation Between PT Cilacap and Wir Asia
Can any of the company-specific risk be diversified away by investing in both PT Cilacap and Wir Asia 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 Wir Asia 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 Wir Asia Tbk, you can compare the effects of market volatilities on PT Cilacap and Wir Asia 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 Wir Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Cilacap and Wir Asia.
Diversification Opportunities for PT Cilacap and Wir Asia
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASHA and Wir is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding PT Cilacap Samudera and Wir Asia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wir Asia Tbk 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 Wir Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wir Asia Tbk has no effect on the direction of PT Cilacap i.e., PT Cilacap and Wir Asia go up and down completely randomly.
Pair Corralation between PT Cilacap and Wir Asia
Assuming the 90 days trading horizon PT Cilacap Samudera is expected to under-perform the Wir Asia. In addition to that, PT Cilacap is 1.4 times more volatile than Wir Asia Tbk. It trades about -0.1 of its total potential returns per unit of risk. Wir Asia Tbk is currently generating about 0.0 per unit of volatility. If you would invest 11,400 in Wir Asia Tbk on September 1, 2024 and sell it today you would lose (2,500) from holding Wir Asia Tbk or give up 21.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
PT Cilacap Samudera vs. Wir Asia Tbk
Performance |
| Timeline |
| PT Cilacap Samudera |
| Wir Asia Tbk |
PT Cilacap and Wir Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Cilacap and Wir Asia
The main advantage of trading using opposite PT Cilacap and Wir Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Cilacap position performs unexpectedly, Wir Asia 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 Wir Asia will offset losses from the drop in Wir Asia'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 |
| Wir Asia vs. GoTo Gojek Tokopedia | Wir Asia vs. Adaro Minerals Indonesia | Wir Asia vs. PT Bukalapak | Wir Asia vs. Bank Artos Indonesia |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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