Correlation Between Citra Marga and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both Citra Marga and Humpuss Intermoda 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 Humpuss Intermoda 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 Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on Citra Marga and Humpuss Intermoda 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 Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Marga and Humpuss Intermoda.
Diversification Opportunities for Citra Marga and Humpuss Intermoda
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citra and Humpuss is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Citra Marga Nusaphala and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda 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 Humpuss Intermoda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humpuss Intermoda has no effect on the direction of Citra Marga i.e., Citra Marga and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between Citra Marga and Humpuss Intermoda
Assuming the 90 days trading horizon Citra Marga Nusaphala is expected to generate 1.46 times more return on investment than Humpuss Intermoda. However, Citra Marga is 1.46 times more volatile than Humpuss Intermoda Transportasi. It trades about 0.3 of its potential returns per unit of risk. Humpuss Intermoda Transportasi is currently generating about 0.09 per unit of risk. If you would invest 144,500 in Citra Marga Nusaphala on October 25, 2024 and sell it today you would earn a total of 253,500 from holding Citra Marga Nusaphala or generate 175.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citra Marga Nusaphala vs. Humpuss Intermoda Transportasi
Performance |
| Timeline |
| Citra Marga Nusaphala |
| Humpuss Intermoda |
Citra Marga and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Marga and Humpuss Intermoda
The main advantage of trading using opposite Citra Marga and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Marga position performs unexpectedly, Humpuss Intermoda 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 Humpuss Intermoda will offset losses from the drop in Humpuss Intermoda'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 |
| Humpuss Intermoda vs. Tanah Laut Tbk | Humpuss Intermoda vs. Indorama Synthetics Tbk | Humpuss Intermoda vs. Rig Tenders Tbk | Humpuss Intermoda vs. Integra Indocabinet 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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