Correlation Between Citra Putra and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Citra Putra and PT Sunter 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 Putra and PT Sunter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Putra Realty and PT Sunter Lakeside, you can compare the effects of market volatilities on Citra Putra and PT Sunter 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 Putra with a short position of PT Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Putra and PT Sunter.
Diversification Opportunities for Citra Putra and PT Sunter
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citra and SNLK is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citra Putra Realty and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside and Citra Putra 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 Putra Realty are associated (or correlated) with PT Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Citra Putra i.e., Citra Putra and PT Sunter go up and down completely randomly.
Pair Corralation between Citra Putra and PT Sunter
Assuming the 90 days trading horizon Citra Putra Realty is expected to generate 1.14 times more return on investment than PT Sunter. However, Citra Putra is 1.14 times more volatile than PT Sunter Lakeside. It trades about 0.81 of its potential returns per unit of risk. PT Sunter Lakeside is currently generating about 0.21 per unit of risk. If you would invest 35,000 in Citra Putra Realty on November 18, 2024 and sell it today you would earn a total of 27,000 from holding Citra Putra Realty or generate 77.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Citra Putra Realty vs. PT Sunter Lakeside
Performance |
| Timeline |
| Citra Putra Realty |
| PT Sunter Lakeside |
Citra Putra and PT Sunter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Putra and PT Sunter
The main advantage of trading using opposite Citra Putra and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Putra position performs unexpectedly, PT Sunter 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 Sunter will offset losses from the drop in PT Sunter's long position.| Citra Putra vs. Surya Permata Andalan | Citra Putra vs. Hotel Sahid Jaya | Citra Putra vs. Arthavest Tbk | Citra Putra vs. Jakarta Int Hotels |
| PT Sunter vs. Gaya Abadi Sempurna | PT Sunter vs. Damai Sejahtera Abadi | PT Sunter vs. Red Planet Indonesia | PT Sunter 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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