Correlation Between Autopedia Sukses and PT Arkora
Can any of the company-specific risk be diversified away by investing in both Autopedia Sukses and PT Arkora 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 PT Arkora 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 PT Arkora Hydro, you can compare the effects of market volatilities on Autopedia Sukses and PT Arkora 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 PT Arkora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autopedia Sukses and PT Arkora.
Diversification Opportunities for Autopedia Sukses and PT Arkora
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Autopedia and ARKO is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Autopedia Sukses Lestari and PT Arkora Hydro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Arkora Hydro 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 PT Arkora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Arkora Hydro has no effect on the direction of Autopedia Sukses i.e., Autopedia Sukses and PT Arkora go up and down completely randomly.
Pair Corralation between Autopedia Sukses and PT Arkora
Assuming the 90 days trading horizon Autopedia Sukses Lestari is expected to under-perform the PT Arkora. But the stock apears to be less risky and, when comparing its historical volatility, Autopedia Sukses Lestari is 1.89 times less risky than PT Arkora. The stock trades about -0.52 of its potential returns per unit of risk. The PT Arkora Hydro is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 105,000 in PT Arkora Hydro on September 2, 2024 and sell it today you would lose (8,000) from holding PT Arkora Hydro or give up 7.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autopedia Sukses Lestari vs. PT Arkora Hydro
Performance |
| Timeline |
| Autopedia Sukses Lestari |
| PT Arkora Hydro |
Autopedia Sukses and PT Arkora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autopedia Sukses and PT Arkora
The main advantage of trading using opposite Autopedia Sukses and PT Arkora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autopedia Sukses position performs unexpectedly, PT Arkora 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 Arkora will offset losses from the drop in PT Arkora'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 |
| PT Arkora vs. PT Dewi Shri | PT Arkora vs. Adaro Minerals Indonesia | PT Arkora vs. PT Cilacap Samudera | PT Arkora vs. Habco Trans Maritima |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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