Correlation Between Buana Listya and Ciptadana Asset
Can any of the company-specific risk be diversified away by investing in both Buana Listya 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 Buana Listya and Ciptadana Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Buana Listya Tama and Ciptadana Asset Management, you can compare the effects of market volatilities on Buana Listya 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 Buana Listya with a short position of Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Buana Listya and Ciptadana Asset.
Diversification Opportunities for Buana Listya and Ciptadana Asset
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Buana and Ciptadana is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Buana Listya Tama 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 Buana Listya 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 Buana Listya Tama 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 Buana Listya i.e., Buana Listya and Ciptadana Asset go up and down completely randomly.
Pair Corralation between Buana Listya and Ciptadana Asset
Assuming the 90 days trading horizon Buana Listya Tama is expected to under-perform the Ciptadana Asset. In addition to that, Buana Listya is 1.63 times more volatile than Ciptadana Asset Management. It trades about -0.14 of its total potential returns per unit of risk. Ciptadana Asset Management is currently generating about 0.03 per unit of volatility. If you would invest 5,922 in Ciptadana Asset Management on September 1, 2024 and sell it today you would earn a total of 78.00 from holding Ciptadana Asset Management or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Buana Listya Tama vs. Ciptadana Asset Management
Performance |
| Timeline |
| Buana Listya Tama |
| Ciptadana Asset Mana |
Buana Listya and Ciptadana Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Buana Listya and Ciptadana Asset
The main advantage of trading using opposite Buana Listya and Ciptadana Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Buana Listya 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.| Buana Listya vs. Ciptadana Asset Management | Buana Listya vs. Grand Kartech Tbk | Buana Listya vs. Anabatic Technologies Tbk | Buana Listya vs. Galva Technologies Tbk |
| Ciptadana Asset vs. Equity Development Investment | Ciptadana Asset vs. Gunawan Dianjaya Steel | Ciptadana Asset vs. Yelooo Integra Datanet | Ciptadana Asset vs. Hoffmen Cleanindo |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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