Correlation Between Sepeda Bersama and Pollux Investasi
Can any of the company-specific risk be diversified away by investing in both Sepeda Bersama and Pollux Investasi 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 Pollux Investasi 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 Pollux Investasi Internasional, you can compare the effects of market volatilities on Sepeda Bersama and Pollux Investasi 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 Pollux Investasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sepeda Bersama and Pollux Investasi.
Diversification Opportunities for Sepeda Bersama and Pollux Investasi
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sepeda and Pollux is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sepeda Bersama Indonesia and Pollux Investasi Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pollux Investasi Int 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 Pollux Investasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pollux Investasi Int has no effect on the direction of Sepeda Bersama i.e., Sepeda Bersama and Pollux Investasi go up and down completely randomly.
Pair Corralation between Sepeda Bersama and Pollux Investasi
Assuming the 90 days trading horizon Sepeda Bersama is expected to generate 2.26 times less return on investment than Pollux Investasi. In addition to that, Sepeda Bersama is 1.19 times more volatile than Pollux Investasi Internasional. It trades about 0.02 of its total potential returns per unit of risk. Pollux Investasi Internasional is currently generating about 0.05 per unit of volatility. If you would invest 68,500 in Pollux Investasi Internasional on August 30, 2024 and sell it today you would earn a total of 10,000 from holding Pollux Investasi Internasional or generate 14.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sepeda Bersama Indonesia vs. Pollux Investasi Internasional
Performance |
| Timeline |
| Sepeda Bersama Indonesia |
| Pollux Investasi Int |
Sepeda Bersama and Pollux Investasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sepeda Bersama and Pollux Investasi
The main advantage of trading using opposite Sepeda Bersama and Pollux Investasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sepeda Bersama position performs unexpectedly, Pollux Investasi 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 Pollux Investasi will offset losses from the drop in Pollux Investasi's 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 |
| Pollux Investasi vs. Pollux Properti Indonesia | Pollux Investasi vs. Maha Properti Indonesia | Pollux Investasi vs. Mega Manunggal Property | Pollux Investasi vs. Urban Jakarta Propertindo |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |