Correlation Between Ciputra Development and PP Properti
Can any of the company-specific risk be diversified away by investing in both Ciputra Development and PP Properti 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 Ciputra Development and PP Properti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ciputra Development Tbk and PP Properti Tbk, you can compare the effects of market volatilities on Ciputra Development and PP Properti 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 Ciputra Development with a short position of PP Properti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciputra Development and PP Properti.
Diversification Opportunities for Ciputra Development and PP Properti
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ciputra and PPRO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ciputra Development Tbk and PP Properti Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PP Properti Tbk and Ciputra Development 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 Ciputra Development Tbk are associated (or correlated) with PP Properti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PP Properti Tbk has no effect on the direction of Ciputra Development i.e., Ciputra Development and PP Properti go up and down completely randomly.
Pair Corralation between Ciputra Development and PP Properti
If you would invest 99,500 in Ciputra Development Tbk on November 3, 2024 and sell it today you would lose (500.00) from holding Ciputra Development Tbk or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Ciputra Development Tbk vs. PP Properti Tbk
Performance |
| Timeline |
| Ciputra Development Tbk |
| PP Properti Tbk |
Ciputra Development and PP Properti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciputra Development and PP Properti
The main advantage of trading using opposite Ciputra Development and PP Properti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciputra Development position performs unexpectedly, PP Properti 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 PP Properti will offset losses from the drop in PP Properti's long position.| Ciputra Development vs. Summarecon Agung Tbk | Ciputra Development vs. Bumi Serpong Damai | Ciputra Development vs. Adhi Karya Persero | Ciputra Development vs. Wijaya Karya Beton |
| PP Properti vs. Wijaya Karya Beton | PP Properti vs. Pembangunan Perumahan PT | PP Properti vs. Waskita Beton Precast | PP Properti vs. Semen Baturaja Persero |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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