Correlation Between Puradelta Lestari and Karya Bersama
Can any of the company-specific risk be diversified away by investing in both Puradelta Lestari and Karya Bersama 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 Karya Bersama 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 Karya Bersama Anugerah, you can compare the effects of market volatilities on Puradelta Lestari and Karya Bersama 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 Karya Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puradelta Lestari and Karya Bersama.
Diversification Opportunities for Puradelta Lestari and Karya Bersama
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puradelta and Karya is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Puradelta Lestari PT and Karya Bersama Anugerah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karya Bersama Anugerah 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 Karya Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karya Bersama Anugerah has no effect on the direction of Puradelta Lestari i.e., Puradelta Lestari and Karya Bersama go up and down completely randomly.
Pair Corralation between Puradelta Lestari and Karya Bersama
Assuming the 90 days trading horizon Puradelta Lestari PT is expected to generate 0.18 times more return on investment than Karya Bersama. However, Puradelta Lestari PT is 5.58 times less risky than Karya Bersama. It trades about 0.0 of its potential returns per unit of risk. Karya Bersama Anugerah is currently generating about -0.14 per unit of risk. If you would invest 14,800 in Puradelta Lestari PT on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Puradelta Lestari PT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puradelta Lestari PT vs. Karya Bersama Anugerah
Performance |
| Timeline |
| Puradelta Lestari |
| Karya Bersama Anugerah |
Puradelta Lestari and Karya Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puradelta Lestari and Karya Bersama
The main advantage of trading using opposite Puradelta Lestari and Karya Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puradelta Lestari position performs unexpectedly, Karya Bersama 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 Karya Bersama will offset losses from the drop in Karya Bersama's 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 |
| Karya Bersama vs. Putra Rajawali Kencana | Karya Bersama vs. Repower Asia Indonesia | Karya Bersama vs. DMS Propertindo Tbk | Karya Bersama vs. Perintis Triniti Properti |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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