Correlation Between Enseval Putra and Ciptadana Asset
Can any of the company-specific risk be diversified away by investing in both Enseval Putra 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 Enseval Putra and Ciptadana Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enseval Putra Megatrading and Ciptadana Asset Management, you can compare the effects of market volatilities on Enseval Putra 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 Enseval Putra with a short position of Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enseval Putra and Ciptadana Asset.
Diversification Opportunities for Enseval Putra and Ciptadana Asset
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enseval and Ciptadana is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Enseval Putra Megatrading 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 Enseval Putra 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 Enseval Putra Megatrading 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 Enseval Putra i.e., Enseval Putra and Ciptadana Asset go up and down completely randomly.
Pair Corralation between Enseval Putra and Ciptadana Asset
Assuming the 90 days trading horizon Enseval Putra Megatrading is expected to under-perform the Ciptadana Asset. But the stock apears to be less risky and, when comparing its historical volatility, Enseval Putra Megatrading is 4.41 times less risky than Ciptadana Asset. The stock trades about -0.13 of its potential returns per unit of risk. The Ciptadana Asset Management is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,626 in Ciptadana Asset Management on August 30, 2024 and sell it today you would earn a total of 174.00 from holding Ciptadana Asset Management or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enseval Putra Megatrading vs. Ciptadana Asset Management
Performance |
| Timeline |
| Enseval Putra Megatrading |
| Ciptadana Asset Mana |
Enseval Putra and Ciptadana Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enseval Putra and Ciptadana Asset
The main advantage of trading using opposite Enseval Putra and Ciptadana Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enseval Putra 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.| Enseval Putra vs. Merdeka Copper Gold | Enseval Putra vs. Tower Bersama Infrastructure | Enseval Putra vs. Erajaya Swasembada Tbk | Enseval Putra vs. Surya Citra Media |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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