Correlation Between Citra Marga and Exploitasi Energi
Can any of the company-specific risk be diversified away by investing in both Citra Marga and Exploitasi Energi 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 Marga and Exploitasi Energi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Marga Nusaphala and Exploitasi Energi Indonesia, you can compare the effects of market volatilities on Citra Marga and Exploitasi Energi 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 Marga with a short position of Exploitasi Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Marga and Exploitasi Energi.
Diversification Opportunities for Citra Marga and Exploitasi Energi
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citra and Exploitasi is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citra Marga Nusaphala and Exploitasi Energi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exploitasi Energi and Citra Marga 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 Marga Nusaphala are associated (or correlated) with Exploitasi Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exploitasi Energi has no effect on the direction of Citra Marga i.e., Citra Marga and Exploitasi Energi go up and down completely randomly.
Pair Corralation between Citra Marga and Exploitasi Energi
Assuming the 90 days trading horizon Citra Marga is expected to generate 1.56 times less return on investment than Exploitasi Energi. But when comparing it to its historical volatility, Citra Marga Nusaphala is 1.46 times less risky than Exploitasi Energi. It trades about 0.3 of its potential returns per unit of risk. Exploitasi Energi Indonesia is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Exploitasi Energi Indonesia on October 25, 2024 and sell it today you would earn a total of 2,400 from holding Exploitasi Energi Indonesia or generate 342.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citra Marga Nusaphala vs. Exploitasi Energi Indonesia
Performance |
| Timeline |
| Citra Marga Nusaphala |
| Exploitasi Energi |
Citra Marga and Exploitasi Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Marga and Exploitasi Energi
The main advantage of trading using opposite Citra Marga and Exploitasi Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Marga position performs unexpectedly, Exploitasi Energi 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 Exploitasi Energi will offset losses from the drop in Exploitasi Energi's long position.| Citra Marga vs. Berlian Laju Tanker | Citra Marga vs. Solusi Bangun Indonesia | Citra Marga vs. Kawasan Industri Jababeka | Citra Marga vs. Mnc Investama Tbk |
| Exploitasi Energi vs. Central Proteina Prima | Exploitasi Energi vs. Darma Henwa Tbk | Exploitasi Energi vs. Bakrieland Development Tbk | Exploitasi Energi vs. Energi Mega Persada |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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