Correlation Between Autopedia Sukses and Pt Pradiksi
Can any of the company-specific risk be diversified away by investing in both Autopedia Sukses and Pt Pradiksi 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 Pradiksi 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 Pradiksi Gunatama, you can compare the effects of market volatilities on Autopedia Sukses and Pt Pradiksi 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 Pradiksi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autopedia Sukses and Pt Pradiksi.
Diversification Opportunities for Autopedia Sukses and Pt Pradiksi
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Autopedia and PGUN is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Autopedia Sukses Lestari and Pt Pradiksi Gunatama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pradiksi Gunatama 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 Pradiksi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pradiksi Gunatama has no effect on the direction of Autopedia Sukses i.e., Autopedia Sukses and Pt Pradiksi go up and down completely randomly.
Pair Corralation between Autopedia Sukses and Pt Pradiksi
Assuming the 90 days trading horizon Autopedia Sukses is expected to generate 4.81 times less return on investment than Pt Pradiksi. In addition to that, Autopedia Sukses is 3.19 times more volatile than Pt Pradiksi Gunatama. It trades about 0.01 of its total potential returns per unit of risk. Pt Pradiksi Gunatama is currently generating about 0.19 per unit of volatility. If you would invest 34,000 in Pt Pradiksi Gunatama on September 2, 2024 and sell it today you would earn a total of 8,400 from holding Pt Pradiksi Gunatama or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Autopedia Sukses Lestari vs. Pt Pradiksi Gunatama
Performance |
| Timeline |
| Autopedia Sukses Lestari |
| Pt Pradiksi Gunatama |
Autopedia Sukses and Pt Pradiksi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autopedia Sukses and Pt Pradiksi
The main advantage of trading using opposite Autopedia Sukses and Pt Pradiksi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autopedia Sukses position performs unexpectedly, Pt Pradiksi 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 Pradiksi will offset losses from the drop in Pt Pradiksi'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 Pradiksi vs. Habco Trans Maritima | Pt Pradiksi vs. PT Cilacap Samudera | Pt Pradiksi vs. PT Sari Kreasi | Pt Pradiksi 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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