Correlation Between Cipta Selera and PT Puri
Can any of the company-specific risk be diversified away by investing in both Cipta Selera and PT Puri 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 Cipta Selera and PT Puri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cipta Selera Murni and PT Puri Sentul, you can compare the effects of market volatilities on Cipta Selera and PT Puri 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 Cipta Selera with a short position of PT Puri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cipta Selera and PT Puri.
Diversification Opportunities for Cipta Selera and PT Puri
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cipta and KDTN is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cipta Selera Murni and PT Puri Sentul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Puri Sentul and Cipta Selera 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 Cipta Selera Murni are associated (or correlated) with PT Puri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Puri Sentul has no effect on the direction of Cipta Selera i.e., Cipta Selera and PT Puri go up and down completely randomly.
Pair Corralation between Cipta Selera and PT Puri
Assuming the 90 days trading horizon Cipta Selera Murni is expected to generate 0.31 times more return on investment than PT Puri. However, Cipta Selera Murni is 3.19 times less risky than PT Puri. It trades about 0.13 of its potential returns per unit of risk. PT Puri Sentul is currently generating about -0.09 per unit of risk. If you would invest 286,000 in Cipta Selera Murni on August 30, 2024 and sell it today you would earn a total of 16,000 from holding Cipta Selera Murni or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cipta Selera Murni vs. PT Puri Sentul
Performance |
| Timeline |
| Cipta Selera Murni |
| PT Puri Sentul |
Cipta Selera and PT Puri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cipta Selera and PT Puri
The main advantage of trading using opposite Cipta Selera and PT Puri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cipta Selera position performs unexpectedly, PT Puri 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 PT Puri will offset losses from the drop in PT Puri's long position.| Cipta Selera vs. Era Media Sejahtera | Cipta Selera vs. Dharma Polimetal Tbk | Cipta Selera vs. Mahaka Media Tbk | Cipta Selera vs. Lippo General Insurance |
| PT Puri vs. PT Dewi Shri | PT Puri vs. Bangun Karya Perkasa | PT Puri vs. Gaya Abadi Sempurna | PT Puri vs. Habco Trans Maritima |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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