Correlation Between PT Data and Ciptadana Asset
Can any of the company-specific risk be diversified away by investing in both PT Data and Ciptadana 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 Ciptadana 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 Ciptadana Asset Management, you can compare the effects of market volatilities on PT Data and Ciptadana 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 Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Data and Ciptadana Asset.
Diversification Opportunities for PT Data and Ciptadana Asset
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ELIT and Ciptadana is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding PT Data Sinergitama and Ciptadana Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciptadana Asset Mana 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 Ciptadana Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciptadana Asset Mana has no effect on the direction of PT Data i.e., PT Data and Ciptadana Asset go up and down completely randomly.
Pair Corralation between PT Data and Ciptadana Asset
Assuming the 90 days trading horizon PT Data Sinergitama is expected to under-perform the Ciptadana Asset. But the stock apears to be less risky and, when comparing its historical volatility, PT Data Sinergitama is 1.24 times less risky than Ciptadana Asset. The stock trades about -0.02 of its potential returns per unit of risk. The Ciptadana Asset Management is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,220 in Ciptadana Asset Management on September 2, 2024 and sell it today you would lose (1,220) from holding Ciptadana Asset Management or give up 16.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.16% |
| Values | Daily Returns |
PT Data Sinergitama vs. Ciptadana Asset Management
Performance |
| Timeline |
| PT Data Sinergitama |
| Ciptadana Asset Mana |
PT Data and Ciptadana Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Data and Ciptadana Asset
The main advantage of trading using opposite PT Data and Ciptadana Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Data position performs unexpectedly, Ciptadana 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 Ciptadana Asset will offset losses from the drop in Ciptadana Asset's 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 |
| Ciptadana Asset vs. PT Dewi Shri | Ciptadana Asset vs. PT Data Sinergitama | Ciptadana Asset vs. PAM Mineral Tbk | Ciptadana Asset vs. Autopedia Sukses Lestari |
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 Stocks Directory module to find actively traded stocks across global markets.
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