Correlation Between Autopedia Sukses and Adhi Commuter
Can any of the company-specific risk be diversified away by investing in both Autopedia Sukses and Adhi Commuter 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 Autopedia Sukses and Adhi Commuter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autopedia Sukses Lestari and Adhi Commuter Properti, you can compare the effects of market volatilities on Autopedia Sukses and Adhi Commuter 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 Autopedia Sukses with a short position of Adhi Commuter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autopedia Sukses and Adhi Commuter.
Diversification Opportunities for Autopedia Sukses and Adhi Commuter
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Autopedia and Adhi is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Autopedia Sukses Lestari and Adhi Commuter Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adhi Commuter Properti and Autopedia Sukses 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 Autopedia Sukses Lestari are associated (or correlated) with Adhi Commuter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adhi Commuter Properti has no effect on the direction of Autopedia Sukses i.e., Autopedia Sukses and Adhi Commuter go up and down completely randomly.
Pair Corralation between Autopedia Sukses and Adhi Commuter
Assuming the 90 days trading horizon Autopedia Sukses Lestari is expected to generate 2.16 times more return on investment than Adhi Commuter. However, Autopedia Sukses is 2.16 times more volatile than Adhi Commuter Properti. It trades about -0.01 of its potential returns per unit of risk. Adhi Commuter Properti is currently generating about -0.04 per unit of risk. If you would invest 13,400 in Autopedia Sukses Lestari on August 27, 2024 and sell it today you would lose (4,600) from holding Autopedia Sukses Lestari or give up 34.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autopedia Sukses Lestari vs. Adhi Commuter Properti
Performance |
| Timeline |
| Autopedia Sukses Lestari |
| Adhi Commuter Properti |
Autopedia Sukses and Adhi Commuter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autopedia Sukses and Adhi Commuter
The main advantage of trading using opposite Autopedia Sukses and Adhi Commuter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autopedia Sukses position performs unexpectedly, Adhi Commuter 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 Adhi Commuter will offset losses from the drop in Adhi Commuter's long position.| Autopedia Sukses vs. Adaro Minerals Indonesia | Autopedia Sukses vs. Dharma Polimetal Tbk | Autopedia Sukses vs. Wir Asia Tbk | Autopedia Sukses vs. Adi Sarana Armada |
| Adhi Commuter vs. Jaya Sukses Makmur | Adhi Commuter vs. Pollux Investasi Internasional | Adhi Commuter vs. Modernland Realty Ltd | Adhi Commuter vs. Suryamas Dutamakmur Tbk |
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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