Correlation Between Primarindo Asia and Argo Pantes
Can any of the company-specific risk be diversified away by investing in both Primarindo Asia and Argo Pantes 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 Primarindo Asia and Argo Pantes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Primarindo Asia Infrastructure and Argo Pantes Tbk, you can compare the effects of market volatilities on Primarindo Asia and Argo Pantes 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 Primarindo Asia with a short position of Argo Pantes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primarindo Asia and Argo Pantes.
Diversification Opportunities for Primarindo Asia and Argo Pantes
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Primarindo and Argo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Primarindo Asia Infrastructure and Argo Pantes Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Pantes Tbk and Primarindo Asia 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 Primarindo Asia Infrastructure are associated (or correlated) with Argo Pantes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Pantes Tbk has no effect on the direction of Primarindo Asia i.e., Primarindo Asia and Argo Pantes go up and down completely randomly.
Pair Corralation between Primarindo Asia and Argo Pantes
Assuming the 90 days trading horizon Primarindo Asia Infrastructure is expected to under-perform the Argo Pantes. But the stock apears to be less risky and, when comparing its historical volatility, Primarindo Asia Infrastructure is 1.06 times less risky than Argo Pantes. The stock trades about 0.0 of its potential returns per unit of risk. The Argo Pantes Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 111,000 in Argo Pantes Tbk on August 25, 2024 and sell it today you would lose (11,000) from holding Argo Pantes Tbk or give up 9.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Primarindo Asia Infrastructure vs. Argo Pantes Tbk
Performance |
| Timeline |
| Primarindo Asia Infr |
| Argo Pantes Tbk |
Primarindo Asia and Argo Pantes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primarindo Asia and Argo Pantes
The main advantage of trading using opposite Primarindo Asia and Argo Pantes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primarindo Asia position performs unexpectedly, Argo Pantes 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 Argo Pantes will offset losses from the drop in Argo Pantes' long position.| Primarindo Asia vs. Sepatu Bata Tbk | Primarindo Asia vs. Ever Shine Textile | Primarindo Asia vs. Argo Pantes Tbk | Primarindo Asia vs. Indo Kordsa Tbk |
| Argo Pantes vs. Sepatu Bata Tbk | Argo Pantes vs. Ever Shine Textile | Argo Pantes vs. Eratex Djaja Tbk | Argo Pantes vs. PT Century Textile |
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.
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