Correlation Between Arkadia Digital and Ciptadana Asset
Can any of the company-specific risk be diversified away by investing in both Arkadia Digital and Ciptadana Asset 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 Arkadia Digital and Ciptadana Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arkadia Digital Media and Ciptadana Asset Management, you can compare the effects of market volatilities on Arkadia Digital and Ciptadana Asset 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 Arkadia Digital with a short position of Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arkadia Digital and Ciptadana Asset.
Diversification Opportunities for Arkadia Digital and Ciptadana Asset
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Arkadia and Ciptadana is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Arkadia Digital Media and Ciptadana Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciptadana Asset Mana and Arkadia Digital 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 Arkadia Digital Media are associated (or correlated) with Ciptadana Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciptadana Asset Mana has no effect on the direction of Arkadia Digital i.e., Arkadia Digital and Ciptadana Asset go up and down completely randomly.
Pair Corralation between Arkadia Digital and Ciptadana Asset
Assuming the 90 days trading horizon Arkadia Digital Media is expected to under-perform the Ciptadana Asset. In addition to that, Arkadia Digital is 1.66 times more volatile than Ciptadana Asset Management. It trades about -0.21 of its total potential returns per unit of risk. Ciptadana Asset Management is currently generating about 0.08 per unit of volatility. If you would invest 5,700 in Ciptadana Asset Management on November 18, 2024 and sell it today you would earn a total of 200.00 from holding Ciptadana Asset Management or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arkadia Digital Media vs. Ciptadana Asset Management
Performance |
| Timeline |
| Arkadia Digital Media |
| Ciptadana Asset Mana |
Arkadia Digital and Ciptadana Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arkadia Digital and Ciptadana Asset
The main advantage of trading using opposite Arkadia Digital and Ciptadana Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arkadia Digital position performs unexpectedly, Ciptadana Asset 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 Ciptadana Asset will offset losses from the drop in Ciptadana Asset's long position.| Arkadia Digital vs. Electronic City Indonesia | Arkadia Digital vs. MD Pictures Tbk | Arkadia Digital vs. Bintang Oto Global | Arkadia Digital vs. Graha Layar Prima |
| Ciptadana Asset vs. Panin Financial Tbk | Ciptadana Asset vs. Bank Pembangunan Daerah | Ciptadana Asset vs. Garuda Metalindo Tbk | Ciptadana Asset vs. Inocycle Technology Tbk |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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