Correlation Between Sepeda Bersama and Autopedia Sukses
Can any of the company-specific risk be diversified away by investing in both Sepeda Bersama and Autopedia Sukses 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 Sepeda Bersama and Autopedia Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sepeda Bersama Indonesia and Autopedia Sukses Lestari, you can compare the effects of market volatilities on Sepeda Bersama and Autopedia Sukses 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 Sepeda Bersama with a short position of Autopedia Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sepeda Bersama and Autopedia Sukses.
Diversification Opportunities for Sepeda Bersama and Autopedia Sukses
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sepeda and Autopedia is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sepeda Bersama Indonesia and Autopedia Sukses Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopedia Sukses Lestari and Sepeda Bersama 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 Sepeda Bersama Indonesia are associated (or correlated) with Autopedia Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopedia Sukses Lestari has no effect on the direction of Sepeda Bersama i.e., Sepeda Bersama and Autopedia Sukses go up and down completely randomly.
Pair Corralation between Sepeda Bersama and Autopedia Sukses
Assuming the 90 days trading horizon Sepeda Bersama Indonesia is expected to generate 1.01 times more return on investment than Autopedia Sukses. However, Sepeda Bersama is 1.01 times more volatile than Autopedia Sukses Lestari. It trades about 0.03 of its potential returns per unit of risk. Autopedia Sukses Lestari is currently generating about 0.01 per unit of risk. If you would invest 47,600 in Sepeda Bersama Indonesia on August 26, 2024 and sell it today you would earn a total of 2,900 from holding Sepeda Bersama Indonesia or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sepeda Bersama Indonesia vs. Autopedia Sukses Lestari
Performance |
| Timeline |
| Sepeda Bersama Indonesia |
| Autopedia Sukses Lestari |
Sepeda Bersama and Autopedia Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sepeda Bersama and Autopedia Sukses
The main advantage of trading using opposite Sepeda Bersama and Autopedia Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sepeda Bersama position performs unexpectedly, Autopedia Sukses 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 Autopedia Sukses will offset losses from the drop in Autopedia Sukses' long position.| Sepeda Bersama vs. Autopedia Sukses Lestari | Sepeda Bersama vs. Champ Resto Indonesia | Sepeda Bersama vs. Adhi Commuter Properti | Sepeda Bersama vs. GTS Internasional Tbk |
| Autopedia Sukses vs. Adaro Minerals Indonesia | Autopedia Sukses vs. Dharma Polimetal Tbk | Autopedia Sukses vs. Wir Asia Tbk | Autopedia Sukses vs. Adi Sarana Armada |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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