Correlation Between Cahayaputra Asa and Satria Mega
Can any of the company-specific risk be diversified away by investing in both Cahayaputra Asa and Satria Mega 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 Satria Mega 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 Satria Mega Kencana, you can compare the effects of market volatilities on Cahayaputra Asa and Satria Mega 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 Satria Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cahayaputra Asa and Satria Mega.
Diversification Opportunities for Cahayaputra Asa and Satria Mega
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cahayaputra and Satria is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cahayaputra Asa Keramik and Satria Mega Kencana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satria Mega Kencana 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 Satria Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satria Mega Kencana has no effect on the direction of Cahayaputra Asa i.e., Cahayaputra Asa and Satria Mega go up and down completely randomly.
Pair Corralation between Cahayaputra Asa and Satria Mega
Assuming the 90 days trading horizon Cahayaputra Asa Keramik is expected to generate 1.13 times more return on investment than Satria Mega. However, Cahayaputra Asa is 1.13 times more volatile than Satria Mega Kencana. It trades about 0.0 of its potential returns per unit of risk. Satria Mega Kencana is currently generating about 0.0 per unit of risk. If you would invest 15,200 in Cahayaputra Asa Keramik on August 27, 2024 and sell it today you would lose (100.00) from holding Cahayaputra Asa Keramik or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cahayaputra Asa Keramik vs. Satria Mega Kencana
Performance |
| Timeline |
| Cahayaputra Asa Keramik |
| Satria Mega Kencana |
Cahayaputra Asa and Satria Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cahayaputra Asa and Satria Mega
The main advantage of trading using opposite Cahayaputra Asa and Satria Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cahayaputra Asa position performs unexpectedly, Satria Mega 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 Satria Mega will offset losses from the drop in Satria Mega'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 |
| Satria Mega vs. Jasa Armada Indonesia | Satria Mega vs. Cahayaputra Asa Keramik | Satria Mega 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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