Correlation Between Asia Pacific and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both Asia Pacific and Asia Pacific 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 Asia Pacific and Asia Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Pacific Investama and Asia Pacific Fibers, you can compare the effects of market volatilities on Asia Pacific and Asia Pacific 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 Asia Pacific with a short position of Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Pacific and Asia Pacific.
Diversification Opportunities for Asia Pacific and Asia Pacific
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asia and Asia is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Asia Pacific Investama and Asia Pacific Fibers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Fibers and Asia Pacific 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 Asia Pacific Investama are associated (or correlated) with Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Fibers has no effect on the direction of Asia Pacific i.e., Asia Pacific and Asia Pacific go up and down completely randomly.
Pair Corralation between Asia Pacific and Asia Pacific
Assuming the 90 days trading horizon Asia Pacific Investama is expected to generate 0.55 times more return on investment than Asia Pacific. However, Asia Pacific Investama is 1.82 times less risky than Asia Pacific. It trades about 0.16 of its potential returns per unit of risk. Asia Pacific Fibers is currently generating about 0.02 per unit of risk. If you would invest 3,400 in Asia Pacific Investama on November 5, 2024 and sell it today you would earn a total of 200.00 from holding Asia Pacific Investama or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Pacific Investama vs. Asia Pacific Fibers
Performance |
| Timeline |
| Asia Pacific Investama |
| Asia Pacific Fibers |
Asia Pacific and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Pacific and Asia Pacific
The main advantage of trading using opposite Asia Pacific and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Pacific position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.| Asia Pacific vs. Pan Brothers Tbk | Asia Pacific vs. Asia Pacific Fibers | Asia Pacific vs. Ricky Putra Globalindo | Asia Pacific vs. Prima Alloy Steel |
| Asia Pacific vs. PT Sreeya Sewu | Asia Pacific vs. Multistrada Arah Sarana | Asia Pacific vs. Polychem Indonesia Tbk | Asia Pacific vs. Pan Brothers 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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