Correlation Between PT Data and Ashmore Asset
Can any of the company-specific risk be diversified away by investing in both PT Data and Ashmore 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 PT Data and Ashmore Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Data Sinergitama and Ashmore Asset Management, you can compare the effects of market volatilities on PT Data and Ashmore 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 PT Data with a short position of Ashmore Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Data and Ashmore Asset.
Diversification Opportunities for PT Data and Ashmore Asset
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ELIT and Ashmore is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding PT Data Sinergitama and Ashmore Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Asset Management and PT Data 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 PT Data Sinergitama are associated (or correlated) with Ashmore Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Asset Management has no effect on the direction of PT Data i.e., PT Data and Ashmore Asset go up and down completely randomly.
Pair Corralation between PT Data and Ashmore Asset
Assuming the 90 days trading horizon PT Data Sinergitama is expected to generate 1.04 times more return on investment than Ashmore Asset. However, PT Data is 1.04 times more volatile than Ashmore Asset Management. It trades about -0.26 of its potential returns per unit of risk. Ashmore Asset Management is currently generating about -0.44 per unit of risk. If you would invest 14,400 in PT Data Sinergitama on August 26, 2024 and sell it today you would lose (2,600) from holding PT Data Sinergitama or give up 18.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Data Sinergitama vs. Ashmore Asset Management
Performance |
| Timeline |
| PT Data Sinergitama |
| Ashmore Asset Management |
PT Data and Ashmore Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Data and Ashmore Asset
The main advantage of trading using opposite PT Data and Ashmore Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Data position performs unexpectedly, Ashmore 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 Ashmore Asset will offset losses from the drop in Ashmore Asset's long position.| PT Data vs. Tridomain Performance Materials | PT Data vs. Fast Food Indonesia | PT Data vs. Metrodata Electronics Tbk | PT Data vs. Communication Cable Systems |
| Ashmore Asset vs. Bank Amar Indonesia | Ashmore Asset vs. Bhakti Multi Artha | Ashmore Asset vs. Mahaka Radio Integra | Ashmore Asset vs. Integra Indocabinet 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |