Correlation Between Autopedia Sukses and PT Sari
Can any of the company-specific risk be diversified away by investing in both Autopedia Sukses and PT Sari 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 Sari 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 Sari Kreasi, you can compare the effects of market volatilities on Autopedia Sukses and PT Sari 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 Sari. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autopedia Sukses and PT Sari.
Diversification Opportunities for Autopedia Sukses and PT Sari
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Autopedia and RAFI is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Autopedia Sukses Lestari and PT Sari Kreasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sari Kreasi 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 Sari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sari Kreasi has no effect on the direction of Autopedia Sukses i.e., Autopedia Sukses and PT Sari go up and down completely randomly.
Pair Corralation between Autopedia Sukses and PT Sari
Assuming the 90 days trading horizon Autopedia Sukses Lestari is expected to generate 1.2 times more return on investment than PT Sari. However, Autopedia Sukses is 1.2 times more volatile than PT Sari Kreasi. It trades about -0.06 of its potential returns per unit of risk. PT Sari Kreasi is currently generating about -0.47 per unit of risk. If you would invest 7,500 in Autopedia Sukses Lestari on November 28, 2024 and sell it today you would lose (200.00) from holding Autopedia Sukses Lestari or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Autopedia Sukses Lestari vs. PT Sari Kreasi
Performance |
| Timeline |
| Autopedia Sukses Lestari |
| PT Sari Kreasi |
Autopedia Sukses and PT Sari Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autopedia Sukses and PT Sari
The main advantage of trading using opposite Autopedia Sukses and PT Sari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autopedia Sukses position performs unexpectedly, PT Sari 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 Sari will offset losses from the drop in PT Sari'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 Sari vs. PT Dewi Shri | PT Sari vs. Bangun Karya Perkasa | PT Sari vs. Gaya Abadi Sempurna | PT Sari 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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