Correlation Between PT Puri and PT Primadaya
Can any of the company-specific risk be diversified away by investing in both PT Puri and PT Primadaya 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 PT Puri and PT Primadaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Puri Sentul and PT Primadaya Plastisindo, you can compare the effects of market volatilities on PT Puri and PT Primadaya 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 PT Puri with a short position of PT Primadaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Puri and PT Primadaya.
Diversification Opportunities for PT Puri and PT Primadaya
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between KDTN and PDPP is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding PT Puri Sentul and PT Primadaya Plastisindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Primadaya Plastisindo and PT Puri 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 PT Puri Sentul are associated (or correlated) with PT Primadaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Primadaya Plastisindo has no effect on the direction of PT Puri i.e., PT Puri and PT Primadaya go up and down completely randomly.
Pair Corralation between PT Puri and PT Primadaya
Assuming the 90 days trading horizon PT Puri Sentul is expected to under-perform the PT Primadaya. But the stock apears to be less risky and, when comparing its historical volatility, PT Puri Sentul is 1.09 times less risky than PT Primadaya. The stock trades about -0.01 of its potential returns per unit of risk. The PT Primadaya Plastisindo is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 57,181 in PT Primadaya Plastisindo on September 3, 2024 and sell it today you would lose (2,181) from holding PT Primadaya Plastisindo or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Puri Sentul vs. PT Primadaya Plastisindo
Performance |
| Timeline |
| PT Puri Sentul |
| PT Primadaya Plastisindo |
PT Puri and PT Primadaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Puri and PT Primadaya
The main advantage of trading using opposite PT Puri and PT Primadaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Puri position performs unexpectedly, PT Primadaya 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 Primadaya will offset losses from the drop in PT Primadaya's long position.| PT Puri vs. PT Primadaya Plastisindo | PT Puri vs. PT Ketrosden Triasmitra | PT Puri vs. Menthobi Karyatama Raya | PT Puri vs. Jayamas Medica Industri |
| PT Primadaya vs. Lippo General Insurance | PT Primadaya vs. Alumindo Light Metal | PT Primadaya vs. Communication Cable Systems | PT Primadaya vs. Inocycle Technology 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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