Correlation Between Autopedia Sukses and Sepeda Bersama
Can any of the company-specific risk be diversified away by investing in both Autopedia Sukses and Sepeda Bersama 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 Sepeda Bersama 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 Sepeda Bersama Indonesia, you can compare the effects of market volatilities on Autopedia Sukses and Sepeda Bersama 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 Sepeda Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autopedia Sukses and Sepeda Bersama.
Diversification Opportunities for Autopedia Sukses and Sepeda Bersama
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autopedia and Sepeda is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Autopedia Sukses Lestari and Sepeda Bersama Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sepeda Bersama Indonesia 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 Sepeda Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sepeda Bersama Indonesia has no effect on the direction of Autopedia Sukses i.e., Autopedia Sukses and Sepeda Bersama go up and down completely randomly.
Pair Corralation between Autopedia Sukses and Sepeda Bersama
Assuming the 90 days trading horizon Autopedia Sukses Lestari is expected to under-perform the Sepeda Bersama. In addition to that, Autopedia Sukses is 1.32 times more volatile than Sepeda Bersama Indonesia. It trades about -0.51 of its total potential returns per unit of risk. Sepeda Bersama Indonesia is currently generating about -0.26 per unit of volatility. If you would invest 55,500 in Sepeda Bersama Indonesia on August 30, 2024 and sell it today you would lose (4,000) from holding Sepeda Bersama Indonesia or give up 7.21% 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. Sepeda Bersama Indonesia
Performance |
| Timeline |
| Autopedia Sukses Lestari |
| Sepeda Bersama Indonesia |
Autopedia Sukses and Sepeda Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autopedia Sukses and Sepeda Bersama
The main advantage of trading using opposite Autopedia Sukses and Sepeda Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autopedia Sukses position performs unexpectedly, Sepeda Bersama 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 Sepeda Bersama will offset losses from the drop in Sepeda Bersama'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 |
| Sepeda Bersama vs. Autopedia Sukses Lestari | Sepeda Bersama vs. Champ Resto Indonesia | Sepeda Bersama vs. Adhi Commuter Properti | Sepeda Bersama vs. GTS Internasional 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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