Correlation Between Campina Ice and Sariguna Primatirta
Can any of the company-specific risk be diversified away by investing in both Campina Ice and Sariguna Primatirta 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 Campina Ice and Sariguna Primatirta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campina Ice Cream and Sariguna Primatirta PT, you can compare the effects of market volatilities on Campina Ice and Sariguna Primatirta 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 Campina Ice with a short position of Sariguna Primatirta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campina Ice and Sariguna Primatirta.
Diversification Opportunities for Campina Ice and Sariguna Primatirta
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Campina and Sariguna is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Campina Ice Cream and Sariguna Primatirta PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sariguna Primatirta and Campina Ice 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 Campina Ice Cream are associated (or correlated) with Sariguna Primatirta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sariguna Primatirta has no effect on the direction of Campina Ice i.e., Campina Ice and Sariguna Primatirta go up and down completely randomly.
Pair Corralation between Campina Ice and Sariguna Primatirta
Assuming the 90 days trading horizon Campina Ice Cream is expected to under-perform the Sariguna Primatirta. In addition to that, Campina Ice is 2.69 times more volatile than Sariguna Primatirta PT. It trades about -0.01 of its total potential returns per unit of risk. Sariguna Primatirta PT is currently generating about -0.01 per unit of volatility. If you would invest 132,975 in Sariguna Primatirta PT on August 25, 2024 and sell it today you would lose (9,475) from holding Sariguna Primatirta PT or give up 7.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Campina Ice Cream vs. Sariguna Primatirta PT
Performance |
| Timeline |
| Campina Ice Cream |
| Sariguna Primatirta |
Campina Ice and Sariguna Primatirta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campina Ice and Sariguna Primatirta
The main advantage of trading using opposite Campina Ice and Sariguna Primatirta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campina Ice position performs unexpectedly, Sariguna Primatirta 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 Sariguna Primatirta will offset losses from the drop in Sariguna Primatirta's long position.| Campina Ice vs. Sariguna Primatirta PT | Campina Ice vs. Garudafood Putra Putri | Campina Ice vs. Buyung Poetra Sembada | Campina Ice vs. Integra Indocabinet Tbk |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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