Correlation Between Karya Bersama and Citra Borneo
Can any of the company-specific risk be diversified away by investing in both Karya Bersama and Citra Borneo 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 Karya Bersama and Citra Borneo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karya Bersama Anugerah and Citra Borneo Utama, you can compare the effects of market volatilities on Karya Bersama and Citra Borneo 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 Karya Bersama with a short position of Citra Borneo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karya Bersama and Citra Borneo.
Diversification Opportunities for Karya Bersama and Citra Borneo
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Karya and Citra is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Karya Bersama Anugerah and Citra Borneo Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Borneo Utama and Karya Bersama 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 Karya Bersama Anugerah are associated (or correlated) with Citra Borneo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Borneo Utama has no effect on the direction of Karya Bersama i.e., Karya Bersama and Citra Borneo go up and down completely randomly.
Pair Corralation between Karya Bersama and Citra Borneo
Assuming the 90 days trading horizon Karya Bersama Anugerah is expected to generate 1.16 times more return on investment than Citra Borneo. However, Karya Bersama is 1.16 times more volatile than Citra Borneo Utama. It trades about 0.02 of its potential returns per unit of risk. Citra Borneo Utama is currently generating about -0.15 per unit of risk. If you would invest 2,000 in Karya Bersama Anugerah on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Karya Bersama Anugerah or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karya Bersama Anugerah vs. Citra Borneo Utama
Performance |
| Timeline |
| Karya Bersama Anugerah |
| Citra Borneo Utama |
Karya Bersama and Citra Borneo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karya Bersama and Citra Borneo
The main advantage of trading using opposite Karya Bersama and Citra Borneo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karya Bersama position performs unexpectedly, Citra Borneo 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 Citra Borneo will offset losses from the drop in Citra Borneo's long position.| Karya Bersama vs. Putra Rajawali Kencana | Karya Bersama vs. Repower Asia Indonesia | Karya Bersama vs. DMS Propertindo Tbk | Karya Bersama vs. Perintis Triniti Properti |
| Citra Borneo vs. Putra Rajawali Kencana | Citra Borneo vs. Sinergi Inti Plastindo | Citra Borneo vs. Karya Bersama Anugerah | Citra Borneo vs. Jasnita Telekomindo Tbk |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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