Correlation Between Citra Borneo and Palma Serasih
Can any of the company-specific risk be diversified away by investing in both Citra Borneo and Palma Serasih 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 Palma Serasih 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 Palma Serasih PT, you can compare the effects of market volatilities on Citra Borneo and Palma Serasih 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 Palma Serasih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Borneo and Palma Serasih.
Diversification Opportunities for Citra Borneo and Palma Serasih
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citra and Palma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citra Borneo Utama and Palma Serasih PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palma Serasih PT 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 Palma Serasih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palma Serasih PT has no effect on the direction of Citra Borneo i.e., Citra Borneo and Palma Serasih go up and down completely randomly.
Pair Corralation between Citra Borneo and Palma Serasih
If you would invest (100.00) in Palma Serasih PT on October 26, 2024 and sell it today you would earn a total of 100.00 from holding Palma Serasih PT or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citra Borneo Utama vs. Palma Serasih PT
Performance |
| Timeline |
| Citra Borneo Utama |
| Palma Serasih PT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Citra Borneo and Palma Serasih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Borneo and Palma Serasih
The main advantage of trading using opposite Citra Borneo and Palma Serasih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Borneo position performs unexpectedly, Palma Serasih 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 Palma Serasih will offset losses from the drop in Palma Serasih's long position.| Citra Borneo vs. Alumindo Light Metal | Citra Borneo vs. Ashmore Asset Management | Citra Borneo vs. Equity Development Investment | Citra Borneo vs. HK Metals Utama |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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