Correlation Between Adi Sarana and Champ Resto
Can any of the company-specific risk be diversified away by investing in both Adi Sarana and Champ Resto 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 Adi Sarana and Champ Resto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adi Sarana Armada and Champ Resto Indonesia, you can compare the effects of market volatilities on Adi Sarana and Champ Resto 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 Adi Sarana with a short position of Champ Resto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adi Sarana and Champ Resto.
Diversification Opportunities for Adi Sarana and Champ Resto
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Adi and Champ is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Adi Sarana Armada and Champ Resto Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champ Resto Indonesia and Adi Sarana 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 Adi Sarana Armada are associated (or correlated) with Champ Resto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champ Resto Indonesia has no effect on the direction of Adi Sarana i.e., Adi Sarana and Champ Resto go up and down completely randomly.
Pair Corralation between Adi Sarana and Champ Resto
Assuming the 90 days trading horizon Adi Sarana Armada is expected to under-perform the Champ Resto. But the stock apears to be less risky and, when comparing its historical volatility, Adi Sarana Armada is 1.53 times less risky than Champ Resto. The stock trades about -0.14 of its potential returns per unit of risk. The Champ Resto Indonesia is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 58,000 in Champ Resto Indonesia on December 10, 2024 and sell it today you would earn a total of 8,000 from holding Champ Resto Indonesia or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adi Sarana Armada vs. Champ Resto Indonesia
Performance |
| Timeline |
| Adi Sarana Armada |
| Champ Resto Indonesia |
Adi Sarana and Champ Resto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adi Sarana and Champ Resto
The main advantage of trading using opposite Adi Sarana and Champ Resto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adi Sarana position performs unexpectedly, Champ Resto 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 Champ Resto will offset losses from the drop in Champ Resto's long position.| Adi Sarana vs. Surya Esa Perkasa | ||
| Adi Sarana vs. Tower Bersama Infrastructure | ||
| Adi Sarana vs. Erajaya Swasembada Tbk | ||
| Adi Sarana vs. Bekasi Fajar Industrial |
| Champ Resto vs. Autopedia Sukses Lestari | ||
| Champ Resto vs. Adaro Minerals Indonesia | ||
| Champ Resto vs. Cisarua Mountain Dairy | ||
| Champ Resto vs. Avia Avian PT |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |