Correlation Between PT Citra and PT Klinko
Can any of the company-specific risk be diversified away by investing in both PT Citra and PT Klinko 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 PT Klinko 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 PT Klinko Karya, you can compare the effects of market volatilities on PT Citra and PT Klinko 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 PT Klinko. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Citra and PT Klinko.
Diversification Opportunities for PT Citra and PT Klinko
Very good diversification
The 3 months correlation between CTBN and KLIN is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PT Citra Tubindo and PT Klinko Karya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Klinko Karya 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 PT Klinko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Klinko Karya has no effect on the direction of PT Citra i.e., PT Citra and PT Klinko go up and down completely randomly.
Pair Corralation between PT Citra and PT Klinko
Assuming the 90 days trading horizon PT Citra is expected to generate 2.31 times less return on investment than PT Klinko. But when comparing it to its historical volatility, PT Citra Tubindo is 1.02 times less risky than PT Klinko. It trades about 0.11 of its potential returns per unit of risk. PT Klinko Karya is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,000 in PT Klinko Karya on August 27, 2024 and sell it today you would earn a total of 17,400 from holding PT Klinko Karya or generate 870.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.44% |
| Values | Daily Returns |
PT Citra Tubindo vs. PT Klinko Karya
Performance |
| Timeline |
| PT Citra Tubindo |
| PT Klinko Karya |
PT Citra and PT Klinko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Citra and PT Klinko
The main advantage of trading using opposite PT Citra and PT Klinko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Citra position performs unexpectedly, PT Klinko 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 Klinko will offset losses from the drop in PT Klinko's 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 |
| PT Klinko vs. Bangun Karya Perkasa | PT Klinko vs. PT Kusuma Kemindo | PT Klinko vs. PT Hetzer Medical | PT Klinko vs. PT Rohartindo Nusantara |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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