Correlation Between PT Data and Pudjiadi Sons
Can any of the company-specific risk be diversified away by investing in both PT Data and Pudjiadi Sons 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 Pudjiadi Sons 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 Pudjiadi Sons Tbk, you can compare the effects of market volatilities on PT Data and Pudjiadi Sons 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 Pudjiadi Sons. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Data and Pudjiadi Sons.
Diversification Opportunities for PT Data and Pudjiadi Sons
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ELIT and Pudjiadi is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding PT Data Sinergitama and Pudjiadi Sons Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pudjiadi Sons Tbk 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 Pudjiadi Sons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pudjiadi Sons Tbk has no effect on the direction of PT Data i.e., PT Data and Pudjiadi Sons go up and down completely randomly.
Pair Corralation between PT Data and Pudjiadi Sons
Assuming the 90 days trading horizon PT Data Sinergitama is expected to under-perform the Pudjiadi Sons. But the stock apears to be less risky and, when comparing its historical volatility, PT Data Sinergitama is 5.24 times less risky than Pudjiadi Sons. The stock trades about -0.34 of its potential returns per unit of risk. The Pudjiadi Sons Tbk is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 45,400 in Pudjiadi Sons Tbk on September 2, 2024 and sell it today you would earn a total of 90,600 from holding Pudjiadi Sons Tbk or generate 199.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PT Data Sinergitama vs. Pudjiadi Sons Tbk
Performance |
| Timeline |
| PT Data Sinergitama |
| Pudjiadi Sons Tbk |
PT Data and Pudjiadi Sons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Data and Pudjiadi Sons
The main advantage of trading using opposite PT Data and Pudjiadi Sons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Data position performs unexpectedly, Pudjiadi Sons 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 Pudjiadi Sons will offset losses from the drop in Pudjiadi Sons' long position.| PT Data vs. Garuda Metalindo Tbk | PT Data vs. Mahaka Media Tbk | PT Data vs. Chandra Asri Petrochemical | PT Data vs. Surya Citra Media |
| Pudjiadi Sons vs. Indofood Cbp Sukses | Pudjiadi Sons vs. Arkadia Digital Media | Pudjiadi Sons vs. HK Metals Utama | Pudjiadi Sons vs. Metrodata Electronics 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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