Correlation Between Champ Resto and Pudjiadi Sons
Can any of the company-specific risk be diversified away by investing in both Champ Resto 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 Champ Resto and Pudjiadi Sons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champ Resto Indonesia and Pudjiadi Sons Tbk, you can compare the effects of market volatilities on Champ Resto 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 Champ Resto with a short position of Pudjiadi Sons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champ Resto and Pudjiadi Sons.
Diversification Opportunities for Champ Resto and Pudjiadi Sons
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champ and Pudjiadi is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Champ Resto Indonesia 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 Champ Resto 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 Champ Resto Indonesia 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 Champ Resto i.e., Champ Resto and Pudjiadi Sons go up and down completely randomly.
Pair Corralation between Champ Resto and Pudjiadi Sons
Assuming the 90 days trading horizon Champ Resto Indonesia is expected to under-perform the Pudjiadi Sons. But the stock apears to be less risky and, when comparing its historical volatility, Champ Resto Indonesia is 1.11 times less risky than Pudjiadi Sons. The stock trades about -0.08 of its potential returns per unit of risk. The Pudjiadi Sons Tbk is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 41,614 in Pudjiadi Sons Tbk on September 4, 2024 and sell it today you would earn a total of 94,386 from holding Pudjiadi Sons Tbk or generate 226.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champ Resto Indonesia vs. Pudjiadi Sons Tbk
Performance |
| Timeline |
| Champ Resto Indonesia |
| Pudjiadi Sons Tbk |
Champ Resto and Pudjiadi Sons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champ Resto and Pudjiadi Sons
The main advantage of trading using opposite Champ Resto and Pudjiadi Sons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champ Resto 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.| Champ Resto vs. Pudjiadi Sons Tbk | Champ Resto vs. Hotel Sahid Jaya | Champ Resto vs. Panorama Sentrawisata Tbk | Champ Resto vs. Pembangunan Jaya Ancol |
| Pudjiadi Sons vs. Mahaka Media Tbk | Pudjiadi Sons vs. HK Metals Utama | Pudjiadi Sons vs. Bekasi Fajar Industrial | Pudjiadi Sons vs. Era Media Sejahtera |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |