Correlation Between Astra Otoparts and Citra Marga
Can any of the company-specific risk be diversified away by investing in both Astra Otoparts and Citra Marga 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 Astra Otoparts and Citra Marga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Otoparts Tbk and Citra Marga Nusaphala, you can compare the effects of market volatilities on Astra Otoparts and Citra Marga 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 Astra Otoparts with a short position of Citra Marga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Otoparts and Citra Marga.
Diversification Opportunities for Astra Otoparts and Citra Marga
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and Citra is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Astra Otoparts Tbk and Citra Marga Nusaphala in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Marga Nusaphala and Astra Otoparts 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 Astra Otoparts Tbk are associated (or correlated) with Citra Marga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Marga Nusaphala has no effect on the direction of Astra Otoparts i.e., Astra Otoparts and Citra Marga go up and down completely randomly.
Pair Corralation between Astra Otoparts and Citra Marga
Assuming the 90 days trading horizon Astra Otoparts is expected to generate 21.33 times less return on investment than Citra Marga. But when comparing it to its historical volatility, Astra Otoparts Tbk is 1.64 times less risky than Citra Marga. It trades about 0.01 of its potential returns per unit of risk. Citra Marga Nusaphala is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 151,500 in Citra Marga Nusaphala on November 5, 2024 and sell it today you would earn a total of 245,500 from holding Citra Marga Nusaphala or generate 162.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.13% |
| Values | Daily Returns |
Astra Otoparts Tbk vs. Citra Marga Nusaphala
Performance |
| Timeline |
| Astra Otoparts Tbk |
| Citra Marga Nusaphala |
Astra Otoparts and Citra Marga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Otoparts and Citra Marga
The main advantage of trading using opposite Astra Otoparts and Citra Marga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Otoparts position performs unexpectedly, Citra Marga 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 Citra Marga will offset losses from the drop in Citra Marga's long position.| Astra Otoparts vs. Gajah Tunggal Tbk | Astra Otoparts vs. Astra Graphia Tbk | Astra Otoparts vs. Indomobil Sukses Internasional | Astra Otoparts vs. Astra Agro Lestari |
| Citra Marga vs. Berlian Laju Tanker | Citra Marga vs. Solusi Bangun Indonesia | Citra Marga vs. Kawasan Industri Jababeka | Citra Marga vs. Mnc Investama 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |