Correlation Between Champion Pacific and Asiaplast Industries
Can any of the company-specific risk be diversified away by investing in both Champion Pacific and Asiaplast Industries 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 Champion Pacific and Asiaplast Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Pacific Indonesia and Asiaplast Industries Tbk, you can compare the effects of market volatilities on Champion Pacific and Asiaplast Industries 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 Champion Pacific with a short position of Asiaplast Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Pacific and Asiaplast Industries.
Diversification Opportunities for Champion Pacific and Asiaplast Industries
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champion and Asiaplast is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Champion Pacific Indonesia and Asiaplast Industries Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiaplast Industries Tbk and Champion Pacific 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 Champion Pacific Indonesia are associated (or correlated) with Asiaplast Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiaplast Industries Tbk has no effect on the direction of Champion Pacific i.e., Champion Pacific and Asiaplast Industries go up and down completely randomly.
Pair Corralation between Champion Pacific and Asiaplast Industries
Assuming the 90 days trading horizon Champion Pacific is expected to generate 8.68 times less return on investment than Asiaplast Industries. But when comparing it to its historical volatility, Champion Pacific Indonesia is 3.17 times less risky than Asiaplast Industries. It trades about 0.03 of its potential returns per unit of risk. Asiaplast Industries Tbk is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 18,823 in Asiaplast Industries Tbk on September 14, 2024 and sell it today you would earn a total of 35,677 from holding Asiaplast Industries Tbk or generate 189.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champion Pacific Indonesia vs. Asiaplast Industries Tbk
Performance |
| Timeline |
| Champion Pacific Ind |
| Asiaplast Industries Tbk |
Champion Pacific and Asiaplast Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Pacific and Asiaplast Industries
The main advantage of trading using opposite Champion Pacific and Asiaplast Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Pacific position performs unexpectedly, Asiaplast Industries 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 Asiaplast Industries will offset losses from the drop in Asiaplast Industries' long position.| Champion Pacific vs. Kedaung Indah Can | Champion Pacific vs. Kabelindo Murni Tbk | Champion Pacific vs. Bhuwanatala Indah Permai | Champion Pacific vs. Mitrabara Adiperdana PT |
| Asiaplast Industries vs. Kedaung Indah Can | Asiaplast Industries vs. Kabelindo Murni Tbk | Asiaplast Industries vs. Champion Pacific Indonesia | Asiaplast Industries vs. Bhuwanatala Indah Permai |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |