Correlation Between Cahayaputra Asa and Hotel Fitra
Can any of the company-specific risk be diversified away by investing in both Cahayaputra Asa and Hotel Fitra 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 Cahayaputra Asa and Hotel Fitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cahayaputra Asa Keramik and Hotel Fitra International, you can compare the effects of market volatilities on Cahayaputra Asa and Hotel Fitra 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 Cahayaputra Asa with a short position of Hotel Fitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cahayaputra Asa and Hotel Fitra.
Diversification Opportunities for Cahayaputra Asa and Hotel Fitra
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cahayaputra and Hotel is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cahayaputra Asa Keramik and Hotel Fitra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Fitra International and Cahayaputra Asa 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 Cahayaputra Asa Keramik are associated (or correlated) with Hotel Fitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Fitra International has no effect on the direction of Cahayaputra Asa i.e., Cahayaputra Asa and Hotel Fitra go up and down completely randomly.
Pair Corralation between Cahayaputra Asa and Hotel Fitra
Assuming the 90 days trading horizon Cahayaputra Asa Keramik is expected to generate 0.91 times more return on investment than Hotel Fitra. However, Cahayaputra Asa Keramik is 1.1 times less risky than Hotel Fitra. It trades about 0.02 of its potential returns per unit of risk. Hotel Fitra International is currently generating about -0.23 per unit of risk. If you would invest 15,100 in Cahayaputra Asa Keramik on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Cahayaputra Asa Keramik or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cahayaputra Asa Keramik vs. Hotel Fitra International
Performance |
| Timeline |
| Cahayaputra Asa Keramik |
| Hotel Fitra International |
Cahayaputra Asa and Hotel Fitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cahayaputra Asa and Hotel Fitra
The main advantage of trading using opposite Cahayaputra Asa and Hotel Fitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cahayaputra Asa position performs unexpectedly, Hotel Fitra 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 Hotel Fitra will offset losses from the drop in Hotel Fitra's long position.| Cahayaputra Asa vs. Bk Harda Internasional | Cahayaputra Asa vs. Bank Net Indonesia | Cahayaputra Asa vs. Bank Yudha Bhakti | Cahayaputra Asa vs. Medikaloka Hermina PT |
| Hotel Fitra vs. Jasa Armada Indonesia | Hotel Fitra vs. Cahayaputra Asa Keramik | Hotel Fitra vs. Campina Ice Cream |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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