Correlation Between PT Citra and Asiaplast Industries
Can any of the company-specific risk be diversified away by investing in both PT Citra and Asiaplast Industries 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 Citra and Asiaplast Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Citra Tubindo and Asiaplast Industries Tbk, you can compare the effects of market volatilities on PT Citra and Asiaplast Industries 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 Citra with a short position of Asiaplast Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Citra and Asiaplast Industries.
Diversification Opportunities for PT Citra and Asiaplast Industries
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between CTBN and Asiaplast is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PT Citra Tubindo and Asiaplast Industries Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiaplast Industries Tbk and PT Citra 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 Citra Tubindo are associated (or correlated) with Asiaplast Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiaplast Industries Tbk has no effect on the direction of PT Citra i.e., PT Citra and Asiaplast Industries go up and down completely randomly.
Pair Corralation between PT Citra and Asiaplast Industries
Assuming the 90 days trading horizon PT Citra Tubindo is expected to generate 1.55 times more return on investment than Asiaplast Industries. However, PT Citra is 1.55 times more volatile than Asiaplast Industries Tbk. It trades about 0.09 of its potential returns per unit of risk. Asiaplast Industries Tbk is currently generating about 0.02 per unit of risk. If you would invest 118,000 in PT Citra Tubindo on September 3, 2024 and sell it today you would earn a total of 137,000 from holding PT Citra Tubindo or generate 116.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Citra Tubindo vs. Asiaplast Industries Tbk
Performance |
| Timeline |
| PT Citra Tubindo |
| Asiaplast Industries Tbk |
PT Citra and Asiaplast Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Citra and Asiaplast Industries
The main advantage of trading using opposite PT Citra and Asiaplast Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Citra position performs unexpectedly, Asiaplast Industries 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 Asiaplast Industries will offset losses from the drop in Asiaplast Industries' long position.| PT Citra vs. Betonjaya Manunggal Tbk | PT Citra vs. Duta Pertiwi Nusantara | PT Citra vs. Argha Karya Prima | PT Citra vs. Alumindo Light Metal |
| Asiaplast Industries vs. Argha Karya Prima | Asiaplast Industries vs. Alumindo Light Metal | Asiaplast Industries vs. Anugerah Kagum Karya | Asiaplast Industries vs. Asahimas Flat Glass |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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