Correlation Between PT UBC and Armidian Karyatama
Can any of the company-specific risk be diversified away by investing in both PT UBC and Armidian Karyatama 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 Armidian Karyatama 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 Armidian Karyatama Tbk, you can compare the effects of market volatilities on PT UBC and Armidian Karyatama 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 Armidian Karyatama. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT UBC and Armidian Karyatama.
Diversification Opportunities for PT UBC and Armidian Karyatama
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LABS and Armidian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT UBC Medical and Armidian Karyatama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armidian Karyatama Tbk 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 Armidian Karyatama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armidian Karyatama Tbk has no effect on the direction of PT UBC i.e., PT UBC and Armidian Karyatama go up and down completely randomly.
Pair Corralation between PT UBC and Armidian Karyatama
If you would invest 13,700 in PT UBC Medical on September 5, 2024 and sell it today you would lose (300.00) from holding PT UBC Medical or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 21.78% |
| Values | Daily Returns |
PT UBC Medical vs. Armidian Karyatama Tbk
Performance |
| Timeline |
| PT UBC Medical |
| Armidian Karyatama Tbk |
PT UBC and Armidian Karyatama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT UBC and Armidian Karyatama
The main advantage of trading using opposite PT UBC and Armidian Karyatama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT UBC position performs unexpectedly, Armidian Karyatama 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 Armidian Karyatama will offset losses from the drop in Armidian Karyatama'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 |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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