Correlation Between PT Jobubu and Ciptadana Asset
Can any of the company-specific risk be diversified away by investing in both PT Jobubu and Ciptadana Asset 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 PT Jobubu and Ciptadana Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Jobubu Jarum and Ciptadana Asset Management, you can compare the effects of market volatilities on PT Jobubu and Ciptadana Asset 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 PT Jobubu with a short position of Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jobubu and Ciptadana Asset.
Diversification Opportunities for PT Jobubu and Ciptadana Asset
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between BEER and Ciptadana is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding PT Jobubu Jarum and Ciptadana Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciptadana Asset Mana and PT Jobubu 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 PT Jobubu Jarum are associated (or correlated) with Ciptadana Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciptadana Asset Mana has no effect on the direction of PT Jobubu i.e., PT Jobubu and Ciptadana Asset go up and down completely randomly.
Pair Corralation between PT Jobubu and Ciptadana Asset
Assuming the 90 days trading horizon PT Jobubu Jarum is expected to under-perform the Ciptadana Asset. But the stock apears to be less risky and, when comparing its historical volatility, PT Jobubu Jarum is 1.82 times less risky than Ciptadana Asset. The stock trades about -0.03 of its potential returns per unit of risk. The Ciptadana Asset Management is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 8,489 in Ciptadana Asset Management on September 3, 2024 and sell it today you would lose (2,489) from holding Ciptadana Asset Management or give up 29.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.01% |
| Values | Daily Returns |
PT Jobubu Jarum vs. Ciptadana Asset Management
Performance |
| Timeline |
| PT Jobubu Jarum |
| Ciptadana Asset Mana |
PT Jobubu and Ciptadana Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Jobubu and Ciptadana Asset
The main advantage of trading using opposite PT Jobubu and Ciptadana Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jobubu position performs unexpectedly, Ciptadana Asset 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 Ciptadana Asset will offset losses from the drop in Ciptadana Asset's long position.The idea behind PT Jobubu Jarum and Ciptadana Asset Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ciptadana Asset vs. PT Jobubu Jarum | Ciptadana Asset vs. PT Dewi Shri | Ciptadana Asset vs. PT Data Sinergitama | Ciptadana Asset vs. PAM Mineral 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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