Correlation Between Ever Shine and PT Century
Can any of the company-specific risk be diversified away by investing in both Ever Shine and PT Century 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 Ever Shine and PT Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ever Shine Textile and PT Century Textile, you can compare the effects of market volatilities on Ever Shine and PT Century 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 Ever Shine with a short position of PT Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ever Shine and PT Century.
Diversification Opportunities for Ever Shine and PT Century
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ever and CNTX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ever Shine Textile and PT Century Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Century Textile and Ever Shine 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 Ever Shine Textile are associated (or correlated) with PT Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Century Textile has no effect on the direction of Ever Shine i.e., Ever Shine and PT Century go up and down completely randomly.
Pair Corralation between Ever Shine and PT Century
If you would invest 4,100 in Ever Shine Textile on August 25, 2024 and sell it today you would earn a total of 500.00 from holding Ever Shine Textile or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.56% |
| Values | Daily Returns |
Ever Shine Textile vs. PT Century Textile
Performance |
| Timeline |
| Ever Shine Textile |
| PT Century Textile |
Ever Shine and PT Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ever Shine and PT Century
The main advantage of trading using opposite Ever Shine and PT Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ever Shine position performs unexpectedly, PT Century 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 Century will offset losses from the drop in PT Century's long position.| Ever Shine vs. Eratex Djaja Tbk | Ever Shine vs. Goodyear Indonesia Tbk | Ever Shine vs. PT Century Textile | Ever Shine vs. Sepatu Bata Tbk |
| PT Century vs. Eratex Djaja Tbk | PT Century vs. Ever Shine Textile | PT Century vs. Argo Pantes Tbk | PT Century vs. Primarindo Asia Infrastructure |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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