Correlation Between Citra Borneo and Pt Pradiksi
Can any of the company-specific risk be diversified away by investing in both Citra Borneo and Pt Pradiksi 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 Citra Borneo and Pt Pradiksi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Borneo Utama and Pt Pradiksi Gunatama, you can compare the effects of market volatilities on Citra Borneo and Pt Pradiksi 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 Citra Borneo with a short position of Pt Pradiksi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Borneo and Pt Pradiksi.
Diversification Opportunities for Citra Borneo and Pt Pradiksi
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citra and PGUN is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citra Borneo Utama and Pt Pradiksi Gunatama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pradiksi Gunatama and Citra Borneo 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 Citra Borneo Utama are associated (or correlated) with Pt Pradiksi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pradiksi Gunatama has no effect on the direction of Citra Borneo i.e., Citra Borneo and Pt Pradiksi go up and down completely randomly.
Pair Corralation between Citra Borneo and Pt Pradiksi
If you would invest 42,400 in Pt Pradiksi Gunatama on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Pt Pradiksi Gunatama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citra Borneo Utama vs. Pt Pradiksi Gunatama
Performance |
| Timeline |
| Citra Borneo Utama |
| Pt Pradiksi Gunatama |
Citra Borneo and Pt Pradiksi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Borneo and Pt Pradiksi
The main advantage of trading using opposite Citra Borneo and Pt Pradiksi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Borneo position performs unexpectedly, Pt Pradiksi 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 Pt Pradiksi will offset losses from the drop in Pt Pradiksi's long position.| Citra Borneo vs. Dharma Satya Nusantara | Citra Borneo vs. Saratoga Investama Sedaya | Citra Borneo vs. Surya Esa Perkasa | Citra Borneo vs. Elang Mahkota Teknologi |
| Pt Pradiksi vs. Dharma Satya Nusantara | Pt Pradiksi vs. Saratoga Investama Sedaya | Pt Pradiksi vs. Surya Esa Perkasa | Pt Pradiksi vs. Elang Mahkota Teknologi |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |