Correlation Between Exploitasi Energi and Citra Marga
Can any of the company-specific risk be diversified away by investing in both Exploitasi Energi and Citra Marga 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 Exploitasi Energi and Citra Marga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exploitasi Energi Indonesia and Citra Marga Nusaphala, you can compare the effects of market volatilities on Exploitasi Energi and Citra Marga 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 Exploitasi Energi with a short position of Citra Marga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exploitasi Energi and Citra Marga.
Diversification Opportunities for Exploitasi Energi and Citra Marga
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Exploitasi and Citra is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Exploitasi Energi Indonesia and Citra Marga Nusaphala in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Marga Nusaphala and Exploitasi Energi 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 Exploitasi Energi Indonesia are associated (or correlated) with Citra Marga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Marga Nusaphala has no effect on the direction of Exploitasi Energi i.e., Exploitasi Energi and Citra Marga go up and down completely randomly.
Pair Corralation between Exploitasi Energi and Citra Marga
Assuming the 90 days trading horizon Exploitasi Energi Indonesia is expected to generate 1.46 times more return on investment than Citra Marga. However, Exploitasi Energi is 1.46 times more volatile than Citra Marga Nusaphala. It trades about 0.32 of its potential returns per unit of risk. Citra Marga Nusaphala is currently generating about 0.3 per unit of risk. 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 |
Exploitasi Energi Indonesia vs. Citra Marga Nusaphala
Performance |
| Timeline |
| Exploitasi Energi |
| Citra Marga Nusaphala |
Exploitasi Energi and Citra Marga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exploitasi Energi and Citra Marga
The main advantage of trading using opposite Exploitasi Energi and Citra Marga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exploitasi Energi position performs unexpectedly, Citra Marga 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 Citra Marga will offset losses from the drop in Citra Marga's long position.| Exploitasi Energi vs. Central Proteina Prima | Exploitasi Energi vs. Darma Henwa Tbk | Exploitasi Energi vs. Bakrieland Development Tbk | Exploitasi Energi vs. Energi Mega Persada |
| Citra Marga vs. Berlian Laju Tanker | Citra Marga vs. Solusi Bangun Indonesia | Citra Marga vs. Kawasan Industri Jababeka | Citra Marga vs. Mnc Investama 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |