Correlation Between PT Century and Primarindo Asia
Can any of the company-specific risk be diversified away by investing in both PT Century and Primarindo Asia 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 Primarindo Asia 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 Primarindo Asia Infrastructure, you can compare the effects of market volatilities on PT Century and Primarindo Asia 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 Primarindo Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Century and Primarindo Asia.
Diversification Opportunities for PT Century and Primarindo Asia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNTX and Primarindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Century Textile and Primarindo Asia Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primarindo Asia Infr 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 Primarindo Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primarindo Asia Infr has no effect on the direction of PT Century i.e., PT Century and Primarindo Asia go up and down completely randomly.
Pair Corralation between PT Century and Primarindo Asia
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. Primarindo Asia Infrastructure
Performance |
| Timeline |
| PT Century Textile |
| Primarindo Asia Infr |
PT Century and Primarindo Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Century and Primarindo Asia
The main advantage of trading using opposite PT Century and Primarindo Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Century position performs unexpectedly, Primarindo Asia 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 Primarindo Asia will offset losses from the drop in Primarindo Asia'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 |
| Primarindo Asia vs. Sepatu Bata Tbk | Primarindo Asia vs. Ever Shine Textile | Primarindo Asia vs. Argo Pantes Tbk | Primarindo Asia vs. Indo Kordsa 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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