Correlation Between PT Century and Sepatu Bata
Can any of the company-specific risk be diversified away by investing in both PT Century and Sepatu Bata 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 PT Century and Sepatu Bata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Century Textile and Sepatu Bata Tbk, you can compare the effects of market volatilities on PT Century and Sepatu Bata 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 PT Century with a short position of Sepatu Bata. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Century and Sepatu Bata.
Diversification Opportunities for PT Century and Sepatu Bata
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNTX and Sepatu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Century Textile and Sepatu Bata Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sepatu Bata Tbk and PT Century 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 PT Century Textile are associated (or correlated) with Sepatu Bata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sepatu Bata Tbk has no effect on the direction of PT Century i.e., PT Century and Sepatu Bata go up and down completely randomly.
Pair Corralation between PT Century and Sepatu Bata
If you would invest 14,200 in PT Century Textile on August 29, 2024 and sell it today you would earn a total of 0.00 from holding PT Century Textile or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Century Textile vs. Sepatu Bata Tbk
Performance |
| Timeline |
| PT Century Textile |
| Sepatu Bata Tbk |
PT Century and Sepatu Bata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Century and Sepatu Bata
The main advantage of trading using opposite PT Century and Sepatu Bata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Century position performs unexpectedly, Sepatu Bata 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 Sepatu Bata will offset losses from the drop in Sepatu Bata's long position.| PT Century vs. Eratex Djaja Tbk | PT Century vs. Ever Shine Textile | PT Century vs. Argo Pantes Tbk | PT Century vs. Primarindo Asia Infrastructure |
| Sepatu Bata vs. Indo Kordsa Tbk | Sepatu Bata vs. Goodyear Indonesia Tbk | Sepatu Bata vs. Argo Pantes Tbk | Sepatu Bata vs. Primarindo Asia Infrastructure |
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.
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