Correlation Between Puradelta Lestari and Waskita Karya
Can any of the company-specific risk be diversified away by investing in both Puradelta Lestari and Waskita Karya 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 Waskita Karya 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 Waskita Karya Persero, you can compare the effects of market volatilities on Puradelta Lestari and Waskita Karya 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 Waskita Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puradelta Lestari and Waskita Karya.
Diversification Opportunities for Puradelta Lestari and Waskita Karya
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Puradelta and Waskita is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Puradelta Lestari PT and Waskita Karya Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waskita Karya Persero 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 Waskita Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waskita Karya Persero has no effect on the direction of Puradelta Lestari i.e., Puradelta Lestari and Waskita Karya go up and down completely randomly.
Pair Corralation between Puradelta Lestari and Waskita Karya
If you would invest 15,635 in Puradelta Lestari PT on August 28, 2024 and sell it today you would earn a total of 365.00 from holding Puradelta Lestari PT or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Puradelta Lestari PT vs. Waskita Karya Persero
Performance |
| Timeline |
| Puradelta Lestari |
| Waskita Karya Persero |
Puradelta Lestari and Waskita Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puradelta Lestari and Waskita Karya
The main advantage of trading using opposite Puradelta Lestari and Waskita Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puradelta Lestari position performs unexpectedly, Waskita Karya 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 Waskita Karya will offset losses from the drop in Waskita Karya'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 |
| Waskita Karya vs. Wijaya Karya Beton | Waskita Karya vs. Pembangunan Perumahan PT | Waskita Karya vs. Adhi Karya Persero | Waskita Karya vs. Jasa Marga 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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