Correlation Between Ciputra Development and Ristia Bintang
Can any of the company-specific risk be diversified away by investing in both Ciputra Development and Ristia Bintang 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 Ristia Bintang 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 Ristia Bintang Mahkotasejati, you can compare the effects of market volatilities on Ciputra Development and Ristia Bintang 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 Ristia Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciputra Development and Ristia Bintang.
Diversification Opportunities for Ciputra Development and Ristia Bintang
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ciputra and Ristia is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ciputra Development Tbk and Ristia Bintang Mahkotasejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ristia Bintang Mahko 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 Ristia Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ristia Bintang Mahko has no effect on the direction of Ciputra Development i.e., Ciputra Development and Ristia Bintang go up and down completely randomly.
Pair Corralation between Ciputra Development and Ristia Bintang
Assuming the 90 days trading horizon Ciputra Development Tbk is expected to generate 0.96 times more return on investment than Ristia Bintang. However, Ciputra Development Tbk is 1.04 times less risky than Ristia Bintang. It trades about 0.02 of its potential returns per unit of risk. Ristia Bintang Mahkotasejati is currently generating about -0.04 per unit of risk. If you would invest 96,743 in Ciputra Development Tbk on August 28, 2024 and sell it today you would earn a total of 13,757 from holding Ciputra Development Tbk or generate 14.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciputra Development Tbk vs. Ristia Bintang Mahkotasejati
Performance |
| Timeline |
| Ciputra Development Tbk |
| Ristia Bintang Mahko |
Ciputra Development and Ristia Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciputra Development and Ristia Bintang
The main advantage of trading using opposite Ciputra Development and Ristia Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciputra Development position performs unexpectedly, Ristia Bintang 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 Ristia Bintang will offset losses from the drop in Ristia Bintang'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 |
| Ristia Bintang vs. Hoffmen Cleanindo | Ristia Bintang vs. HK Metals Utama | Ristia Bintang vs. Metrodata Electronics Tbk | Ristia Bintang vs. Wintermar Offshore Marine |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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