Correlation Between Panca Anugrah and Ladangbaja Murni
Can any of the company-specific risk be diversified away by investing in both Panca Anugrah and Ladangbaja Murni 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 Panca Anugrah and Ladangbaja Murni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panca Anugrah Wisesa and Ladangbaja Murni PT, you can compare the effects of market volatilities on Panca Anugrah and Ladangbaja Murni 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 Panca Anugrah with a short position of Ladangbaja Murni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panca Anugrah and Ladangbaja Murni.
Diversification Opportunities for Panca Anugrah and Ladangbaja Murni
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panca and Ladangbaja is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Panca Anugrah Wisesa and Ladangbaja Murni PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladangbaja Murni and Panca Anugrah 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 Panca Anugrah Wisesa are associated (or correlated) with Ladangbaja Murni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladangbaja Murni has no effect on the direction of Panca Anugrah i.e., Panca Anugrah and Ladangbaja Murni go up and down completely randomly.
Pair Corralation between Panca Anugrah and Ladangbaja Murni
Assuming the 90 days trading horizon Panca Anugrah is expected to generate 1.68 times less return on investment than Ladangbaja Murni. But when comparing it to its historical volatility, Panca Anugrah Wisesa is 1.53 times less risky than Ladangbaja Murni. It trades about 0.07 of its potential returns per unit of risk. Ladangbaja Murni PT is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,000 in Ladangbaja Murni PT on November 27, 2024 and sell it today you would earn a total of 18,000 from holding Ladangbaja Murni PT or generate 257.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panca Anugrah Wisesa vs. Ladangbaja Murni PT
Performance |
| Timeline |
| Panca Anugrah Wisesa |
| Ladangbaja Murni |
Panca Anugrah and Ladangbaja Murni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panca Anugrah and Ladangbaja Murni
The main advantage of trading using opposite Panca Anugrah and Ladangbaja Murni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panca Anugrah position performs unexpectedly, Ladangbaja Murni 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 Ladangbaja Murni will offset losses from the drop in Ladangbaja Murni's long position.| Panca Anugrah vs. Cisarua Mountain Dairy | Panca Anugrah vs. Triputra Agro Persada | Panca Anugrah vs. Wahana Inti MakmurTbk | Panca Anugrah vs. PT Hasnur Internasional |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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