Correlation Between Primarindo Asia and Ever Shine
Can any of the company-specific risk be diversified away by investing in both Primarindo Asia and Ever Shine 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 Ever Shine 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 Ever Shine Textile, you can compare the effects of market volatilities on Primarindo Asia and Ever Shine 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 Ever Shine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primarindo Asia and Ever Shine.
Diversification Opportunities for Primarindo Asia and Ever Shine
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Primarindo and Ever is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Primarindo Asia Infrastructure and Ever Shine Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Shine Textile 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 Ever Shine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Shine Textile has no effect on the direction of Primarindo Asia i.e., Primarindo Asia and Ever Shine go up and down completely randomly.
Pair Corralation between Primarindo Asia and Ever Shine
Assuming the 90 days trading horizon Primarindo Asia Infrastructure is expected to generate 0.89 times more return on investment than Ever Shine. However, Primarindo Asia Infrastructure is 1.12 times less risky than Ever Shine. It trades about 0.03 of its potential returns per unit of risk. Ever Shine Textile is currently generating about 0.0 per unit of risk. If you would invest 8,700 in Primarindo Asia Infrastructure on August 29, 2024 and sell it today you would earn a total of 1,000.00 from holding Primarindo Asia Infrastructure or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.49% |
| Values | Daily Returns |
Primarindo Asia Infrastructure vs. Ever Shine Textile
Performance |
| Timeline |
| Primarindo Asia Infr |
| Ever Shine Textile |
Primarindo Asia and Ever Shine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primarindo Asia and Ever Shine
The main advantage of trading using opposite Primarindo Asia and Ever Shine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primarindo Asia position performs unexpectedly, Ever Shine 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 Ever Shine will offset losses from the drop in Ever Shine's 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 |
| Ever Shine vs. Eratex Djaja Tbk | Ever Shine vs. Goodyear Indonesia Tbk | Ever Shine vs. PT Century Textile | Ever Shine vs. Sepatu Bata 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |