Correlation Between Citra Borneo and Ciptadana Asset
Can any of the company-specific risk be diversified away by investing in both Citra Borneo and Ciptadana Asset 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 Ciptadana Asset 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 Ciptadana Asset Management, you can compare the effects of market volatilities on Citra Borneo and Ciptadana Asset 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 Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Borneo and Ciptadana Asset.
Diversification Opportunities for Citra Borneo and Ciptadana Asset
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citra and Ciptadana is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Citra Borneo Utama and Ciptadana Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciptadana Asset Mana 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 Ciptadana Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciptadana Asset Mana has no effect on the direction of Citra Borneo i.e., Citra Borneo and Ciptadana Asset go up and down completely randomly.
Pair Corralation between Citra Borneo and Ciptadana Asset
Assuming the 90 days trading horizon Citra Borneo Utama is expected to under-perform the Ciptadana Asset. In addition to that, Citra Borneo is 1.62 times more volatile than Ciptadana Asset Management. It trades about -0.11 of its total potential returns per unit of risk. Ciptadana Asset Management is currently generating about -0.08 per unit of volatility. If you would invest 5,900 in Ciptadana Asset Management on October 7, 2024 and sell it today you would lose (200.00) from holding Ciptadana Asset Management or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citra Borneo Utama vs. Ciptadana Asset Management
Performance |
| Timeline |
| Citra Borneo Utama |
| Ciptadana Asset Mana |
Citra Borneo and Ciptadana Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Borneo and Ciptadana Asset
The main advantage of trading using opposite Citra Borneo and Ciptadana Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Borneo position performs unexpectedly, Ciptadana Asset 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 Ciptadana Asset will offset losses from the drop in Ciptadana Asset's long position.| Citra Borneo vs. Putra Rajawali Kencana | Citra Borneo vs. Sinergi Inti Plastindo | Citra Borneo vs. Karya Bersama Anugerah | Citra Borneo vs. Jasnita Telekomindo Tbk |
| Ciptadana Asset vs. PT Jobubu Jarum | Ciptadana Asset vs. PT Dewi Shri | Ciptadana Asset vs. PT Data Sinergitama | Ciptadana Asset vs. PAM Mineral Tbk |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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