Correlation Between Central Omega and Exploitasi Energi
Can any of the company-specific risk be diversified away by investing in both Central Omega and Exploitasi Energi 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 Central Omega and Exploitasi Energi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Omega Resources and Exploitasi Energi Indonesia, you can compare the effects of market volatilities on Central Omega and Exploitasi Energi 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 Central Omega with a short position of Exploitasi Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Omega and Exploitasi Energi.
Diversification Opportunities for Central Omega and Exploitasi Energi
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Central and Exploitasi is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Central Omega Resources and Exploitasi Energi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exploitasi Energi and Central Omega 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 Central Omega Resources are associated (or correlated) with Exploitasi Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exploitasi Energi has no effect on the direction of Central Omega i.e., Central Omega and Exploitasi Energi go up and down completely randomly.
Pair Corralation between Central Omega and Exploitasi Energi
Assuming the 90 days trading horizon Central Omega is expected to generate 1.2 times less return on investment than Exploitasi Energi. But when comparing it to its historical volatility, Central Omega Resources is 1.57 times less risky than Exploitasi Energi. It trades about 0.18 of its potential returns per unit of risk. Exploitasi Energi Indonesia is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Exploitasi Energi Indonesia on September 13, 2024 and sell it today you would earn a total of 500.00 from holding Exploitasi Energi Indonesia or generate 71.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Omega Resources vs. Exploitasi Energi Indonesia
Performance |
| Timeline |
| Central Omega Resources |
| Exploitasi Energi |
Central Omega and Exploitasi Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Omega and Exploitasi Energi
The main advantage of trading using opposite Central Omega and Exploitasi Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Omega position performs unexpectedly, Exploitasi Energi 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 Exploitasi Energi will offset losses from the drop in Exploitasi Energi's long position.| Central Omega vs. Cita Mineral Investindo | Central Omega vs. Intiland Development Tbk | Central Omega vs. J Resources Asia | Central Omega vs. Resource Alam Indonesia |
| Exploitasi Energi vs. Harum Energy Tbk | Exploitasi Energi vs. Delta Dunia Makmur | Exploitasi Energi vs. Adi Sarana Armada | Exploitasi Energi vs. Elang Mahkota Teknologi |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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