Correlation Between Autopedia Sukses and PT Cilacap
Can any of the company-specific risk be diversified away by investing in both Autopedia Sukses and PT Cilacap 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 Cilacap 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 Cilacap Samudera, you can compare the effects of market volatilities on Autopedia Sukses and PT Cilacap 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 Cilacap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autopedia Sukses and PT Cilacap.
Diversification Opportunities for Autopedia Sukses and PT Cilacap
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autopedia and ASHA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Autopedia Sukses Lestari and PT Cilacap Samudera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Cilacap Samudera 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 Cilacap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Cilacap Samudera has no effect on the direction of Autopedia Sukses i.e., Autopedia Sukses and PT Cilacap go up and down completely randomly.
Pair Corralation between Autopedia Sukses and PT Cilacap
Assuming the 90 days trading horizon Autopedia Sukses Lestari is expected to under-perform the PT Cilacap. But the stock apears to be less risky and, when comparing its historical volatility, Autopedia Sukses Lestari is 3.3 times less risky than PT Cilacap. The stock trades about -0.52 of its potential returns per unit of risk. The PT Cilacap Samudera is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,400 in PT Cilacap Samudera on September 2, 2024 and sell it today you would lose (200.00) from holding PT Cilacap Samudera or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autopedia Sukses Lestari vs. PT Cilacap Samudera
Performance |
| Timeline |
| Autopedia Sukses Lestari |
| PT Cilacap Samudera |
Autopedia Sukses and PT Cilacap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autopedia Sukses and PT Cilacap
The main advantage of trading using opposite Autopedia Sukses and PT Cilacap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autopedia Sukses position performs unexpectedly, PT Cilacap 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 Cilacap will offset losses from the drop in PT Cilacap'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 Cilacap vs. PT Dewi Shri | PT Cilacap vs. PT Data Sinergitama | PT Cilacap vs. PAM Mineral Tbk | PT Cilacap 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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