Correlation Between Citra Putra and Ultra Jaya
Can any of the company-specific risk be diversified away by investing in both Citra Putra and Ultra Jaya 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 Ultra Jaya 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 Ultra Jaya Milk, you can compare the effects of market volatilities on Citra Putra and Ultra Jaya 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 Ultra Jaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Putra and Ultra Jaya.
Diversification Opportunities for Citra Putra and Ultra Jaya
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citra and Ultra is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citra Putra Realty and Ultra Jaya Milk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Jaya Milk 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 Ultra Jaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Jaya Milk has no effect on the direction of Citra Putra i.e., Citra Putra and Ultra Jaya go up and down completely randomly.
Pair Corralation between Citra Putra and Ultra Jaya
Assuming the 90 days trading horizon Citra Putra Realty is expected to under-perform the Ultra Jaya. In addition to that, Citra Putra is 2.17 times more volatile than Ultra Jaya Milk. It trades about -0.03 of its total potential returns per unit of risk. Ultra Jaya Milk is currently generating about 0.04 per unit of volatility. If you would invest 138,716 in Ultra Jaya Milk on August 28, 2024 and sell it today you would earn a total of 33,284 from holding Ultra Jaya Milk or generate 23.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citra Putra Realty vs. Ultra Jaya Milk
Performance |
| Timeline |
| Citra Putra Realty |
| Ultra Jaya Milk |
Citra Putra and Ultra Jaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Putra and Ultra Jaya
The main advantage of trading using opposite Citra Putra and Ultra Jaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Putra position performs unexpectedly, Ultra Jaya 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 Ultra Jaya will offset losses from the drop in Ultra Jaya's long position.| Citra Putra vs. Jasa Armada Indonesia | Citra Putra vs. Cahayaputra Asa Keramik | Citra Putra vs. Campina Ice Cream |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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