Correlation Between Puradelta Lestari and Aneka Gas
Can any of the company-specific risk be diversified away by investing in both Puradelta Lestari and Aneka Gas 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 Puradelta Lestari and Aneka Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puradelta Lestari PT and Aneka Gas Industri, you can compare the effects of market volatilities on Puradelta Lestari and Aneka Gas 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 Puradelta Lestari with a short position of Aneka Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puradelta Lestari and Aneka Gas.
Diversification Opportunities for Puradelta Lestari and Aneka Gas
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Puradelta and Aneka is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Puradelta Lestari PT and Aneka Gas Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aneka Gas Industri and Puradelta Lestari 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 Puradelta Lestari PT are associated (or correlated) with Aneka Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aneka Gas Industri has no effect on the direction of Puradelta Lestari i.e., Puradelta Lestari and Aneka Gas go up and down completely randomly.
Pair Corralation between Puradelta Lestari and Aneka Gas
Assuming the 90 days trading horizon Puradelta Lestari PT is expected to under-perform the Aneka Gas. But the stock apears to be less risky and, when comparing its historical volatility, Puradelta Lestari PT is 2.11 times less risky than Aneka Gas. The stock trades about -0.27 of its potential returns per unit of risk. The Aneka Gas Industri is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 136,000 in Aneka Gas Industri on November 27, 2024 and sell it today you would lose (4,500) from holding Aneka Gas Industri or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puradelta Lestari PT vs. Aneka Gas Industri
Performance |
| Timeline |
| Puradelta Lestari |
| Aneka Gas Industri |
Puradelta Lestari and Aneka Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puradelta Lestari and Aneka Gas
The main advantage of trading using opposite Puradelta Lestari and Aneka Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puradelta Lestari position performs unexpectedly, Aneka Gas 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 Aneka Gas will offset losses from the drop in Aneka Gas' long position.| Puradelta Lestari vs. Pakuwon Jati Tbk | Puradelta Lestari vs. Sido Muncul PT | Puradelta Lestari vs. Bekasi Fajar Industrial | Puradelta Lestari vs. Bank Pembangunan Timur |
| Aneka Gas vs. Surya Esa Perkasa | Aneka Gas vs. Elang Mahkota Teknologi | Aneka Gas vs. Merdeka Copper Gold | Aneka Gas vs. Saratoga Investama Sedaya |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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