Correlation Between PT Citra and Ricky Putra
Can any of the company-specific risk be diversified away by investing in both PT Citra and Ricky Putra 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 Ricky Putra 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 Ricky Putra Globalindo, you can compare the effects of market volatilities on PT Citra and Ricky Putra 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 Ricky Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Citra and Ricky Putra.
Diversification Opportunities for PT Citra and Ricky Putra
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTBN and Ricky is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding PT Citra Tubindo and Ricky Putra Globalindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ricky Putra Globalindo 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 Ricky Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ricky Putra Globalindo has no effect on the direction of PT Citra i.e., PT Citra and Ricky Putra go up and down completely randomly.
Pair Corralation between PT Citra and Ricky Putra
Assuming the 90 days trading horizon PT Citra Tubindo is expected to under-perform the Ricky Putra. But the stock apears to be less risky and, when comparing its historical volatility, PT Citra Tubindo is 2.46 times less risky than Ricky Putra. The stock trades about -0.37 of its potential returns per unit of risk. The Ricky Putra Globalindo is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,700 in Ricky Putra Globalindo on November 5, 2024 and sell it today you would earn a total of 100.00 from holding Ricky Putra Globalindo or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
PT Citra Tubindo vs. Ricky Putra Globalindo
Performance |
| Timeline |
| PT Citra Tubindo |
| Ricky Putra Globalindo |
PT Citra and Ricky Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Citra and Ricky Putra
The main advantage of trading using opposite PT Citra and Ricky Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Citra position performs unexpectedly, Ricky Putra 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 Ricky Putra will offset losses from the drop in Ricky Putra'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 |
| Ricky Putra vs. Catur Sentosa Adiprana | Ricky Putra vs. Fast Food Indonesia | Ricky Putra vs. Hero Supermarket Tbk | Ricky Putra vs. Graha Layar Prima |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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