Correlation Between PT Data and PT Charlie
Can any of the company-specific risk be diversified away by investing in both PT Data and PT Charlie 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 PT Charlie 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 PT Charlie Hospital, you can compare the effects of market volatilities on PT Data and PT Charlie 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 PT Charlie. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Data and PT Charlie.
Diversification Opportunities for PT Data and PT Charlie
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ELIT and RSCH is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding PT Data Sinergitama and PT Charlie Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Charlie Hospital 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 PT Charlie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Charlie Hospital has no effect on the direction of PT Data i.e., PT Data and PT Charlie go up and down completely randomly.
Pair Corralation between PT Data and PT Charlie
Assuming the 90 days trading horizon PT Data is expected to generate 3.38 times less return on investment than PT Charlie. In addition to that, PT Data is 1.03 times more volatile than PT Charlie Hospital. It trades about 0.03 of its total potential returns per unit of risk. PT Charlie Hospital is currently generating about 0.09 per unit of volatility. If you would invest 13,100 in PT Charlie Hospital on August 30, 2024 and sell it today you would earn a total of 20,300 from holding PT Charlie Hospital or generate 154.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 67.11% |
| Values | Daily Returns |
PT Data Sinergitama vs. PT Charlie Hospital
Performance |
| Timeline |
| PT Data Sinergitama |
| PT Charlie Hospital |
PT Data and PT Charlie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Data and PT Charlie
The main advantage of trading using opposite PT Data and PT Charlie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Data position performs unexpectedly, PT Charlie 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 PT Charlie will offset losses from the drop in PT Charlie's long position.| PT Data vs. Ciptadana Asset Management | PT Data vs. Communication Cable Systems | PT Data vs. Media Nusantara Citra | PT Data vs. Indorama Synthetics Tbk |
| PT Charlie vs. Bank Central Asia | PT Charlie vs. Bank Rakyat Indonesia | PT Charlie vs. Bayan Resources Tbk | PT Charlie vs. Bank Mandiri Persero |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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