Correlation Between Karya Bersama and Putra Rajawali
Can any of the company-specific risk be diversified away by investing in both Karya Bersama and Putra Rajawali 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 Putra Rajawali 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 Putra Rajawali Kencana, you can compare the effects of market volatilities on Karya Bersama and Putra Rajawali 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 Putra Rajawali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karya Bersama and Putra Rajawali.
Diversification Opportunities for Karya Bersama and Putra Rajawali
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Karya and Putra is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Karya Bersama Anugerah and Putra Rajawali Kencana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putra Rajawali Kencana 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 Putra Rajawali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putra Rajawali Kencana has no effect on the direction of Karya Bersama i.e., Karya Bersama and Putra Rajawali go up and down completely randomly.
Pair Corralation between Karya Bersama and Putra Rajawali
Assuming the 90 days trading horizon Karya Bersama Anugerah is expected to generate 0.71 times more return on investment than Putra Rajawali. However, Karya Bersama Anugerah is 1.4 times less risky than Putra Rajawali. It trades about -0.1 of its potential returns per unit of risk. Putra Rajawali Kencana is currently generating about -0.15 per unit of risk. If you would invest 2,000 in Karya Bersama Anugerah on September 1, 2024 and sell it today you would lose (200.00) from holding Karya Bersama Anugerah or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karya Bersama Anugerah vs. Putra Rajawali Kencana
Performance |
| Timeline |
| Karya Bersama Anugerah |
| Putra Rajawali Kencana |
Karya Bersama and Putra Rajawali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karya Bersama and Putra Rajawali
The main advantage of trading using opposite Karya Bersama and Putra Rajawali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karya Bersama position performs unexpectedly, Putra Rajawali 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 Putra Rajawali will offset losses from the drop in Putra Rajawali's long position.The idea behind Karya Bersama Anugerah and Putra Rajawali Kencana pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Putra Rajawali vs. Guna Timur Raya | Putra Rajawali vs. Sinergi Inti Plastindo | Putra Rajawali vs. Hartadinata Abadi Tbk | Putra Rajawali vs. Weha Transportasi Indonesia |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings 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 | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |