Correlation Between PT UBC and PT Boston
Can any of the company-specific risk be diversified away by investing in both PT UBC and PT Boston 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 Boston 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 Boston Furniture, you can compare the effects of market volatilities on PT UBC and PT Boston 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 Boston. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT UBC and PT Boston.
Diversification Opportunities for PT UBC and PT Boston
Excellent diversification
The 3 months correlation between LABS and SOFA is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT UBC Medical and PT Boston Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Boston Furniture 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 Boston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Boston Furniture has no effect on the direction of PT UBC i.e., PT UBC and PT Boston go up and down completely randomly.
Pair Corralation between PT UBC and PT Boston
Assuming the 90 days trading horizon PT UBC is expected to generate 10.16 times less return on investment than PT Boston. In addition to that, PT UBC is 1.34 times more volatile than PT Boston Furniture. It trades about 0.02 of its total potential returns per unit of risk. PT Boston Furniture is currently generating about 0.23 per unit of volatility. If you would invest 1,400 in PT Boston Furniture on September 3, 2024 and sell it today you would earn a total of 2,300 from holding PT Boston Furniture or generate 164.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.6% |
| Values | Daily Returns |
PT UBC Medical vs. PT Boston Furniture
Performance |
| Timeline |
| PT UBC Medical |
| PT Boston Furniture |
PT UBC and PT Boston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT UBC and PT Boston
The main advantage of trading using opposite PT UBC and PT Boston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT UBC position performs unexpectedly, PT Boston 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 Boston will offset losses from the drop in PT Boston'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 Boston vs. Mitra Pinasthika Mustika | PT Boston vs. Jakarta Int Hotels | PT Boston vs. Indosat Tbk | PT Boston 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |