Correlation Between PT UBC and PT Anugerah
Can any of the company-specific risk be diversified away by investing in both PT UBC and PT Anugerah 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 UBC and PT Anugerah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT UBC Medical and PT Anugerah Spareparts, you can compare the effects of market volatilities on PT UBC and PT Anugerah 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 UBC with a short position of PT Anugerah. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT UBC and PT Anugerah.
Diversification Opportunities for PT UBC and PT Anugerah
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LABS and AEGS is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PT UBC Medical and PT Anugerah Spareparts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Anugerah Spareparts and PT UBC 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 UBC Medical are associated (or correlated) with PT Anugerah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Anugerah Spareparts has no effect on the direction of PT UBC i.e., PT UBC and PT Anugerah go up and down completely randomly.
Pair Corralation between PT UBC and PT Anugerah
Assuming the 90 days trading horizon PT UBC Medical is expected to under-perform the PT Anugerah. But the stock apears to be less risky and, when comparing its historical volatility, PT UBC Medical is 2.9 times less risky than PT Anugerah. The stock trades about -0.32 of its potential returns per unit of risk. The PT Anugerah Spareparts is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,200 in PT Anugerah Spareparts on September 4, 2024 and sell it today you would earn a total of 100.00 from holding PT Anugerah Spareparts or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PT UBC Medical vs. PT Anugerah Spareparts
Performance |
| Timeline |
| PT UBC Medical |
| PT Anugerah Spareparts |
PT UBC and PT Anugerah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT UBC and PT Anugerah
The main advantage of trading using opposite PT UBC and PT Anugerah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT UBC position performs unexpectedly, PT Anugerah 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 Anugerah will offset losses from the drop in PT Anugerah's long position.| PT UBC vs. Chandra Asri Petrochemical | PT UBC vs. Bank Negara Indonesia | PT UBC vs. Sumber Alfaria Trijaya | PT UBC vs. Mitra Pinasthika Mustika |
| PT Anugerah vs. PT UBC Medical | PT Anugerah vs. City Retail Developments | PT Anugerah vs. Media Nusantara Citra | PT Anugerah vs. Indosterling Technomedia 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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