Correlation Between Pelayaran Nelly and PP Presisi
Can any of the company-specific risk be diversified away by investing in both Pelayaran Nelly and PP Presisi 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 Pelayaran Nelly and PP Presisi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pelayaran Nelly Dwi and PP Presisi Tbk, you can compare the effects of market volatilities on Pelayaran Nelly and PP Presisi 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 Pelayaran Nelly with a short position of PP Presisi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelayaran Nelly and PP Presisi.
Diversification Opportunities for Pelayaran Nelly and PP Presisi
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pelayaran and PPRE is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Pelayaran Nelly Dwi and PP Presisi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PP Presisi Tbk and Pelayaran Nelly 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 Pelayaran Nelly Dwi are associated (or correlated) with PP Presisi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PP Presisi Tbk has no effect on the direction of Pelayaran Nelly i.e., Pelayaran Nelly and PP Presisi go up and down completely randomly.
Pair Corralation between Pelayaran Nelly and PP Presisi
Assuming the 90 days trading horizon Pelayaran Nelly Dwi is expected to generate 0.35 times more return on investment than PP Presisi. However, Pelayaran Nelly Dwi is 2.86 times less risky than PP Presisi. It trades about -0.14 of its potential returns per unit of risk. PP Presisi Tbk is currently generating about -0.33 per unit of risk. If you would invest 46,800 in Pelayaran Nelly Dwi on September 2, 2024 and sell it today you would lose (1,400) from holding Pelayaran Nelly Dwi or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pelayaran Nelly Dwi vs. PP Presisi Tbk
Performance |
| Timeline |
| Pelayaran Nelly Dwi |
| PP Presisi Tbk |
Pelayaran Nelly and PP Presisi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pelayaran Nelly and PP Presisi
The main advantage of trading using opposite Pelayaran Nelly and PP Presisi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pelayaran Nelly position performs unexpectedly, PP Presisi 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 PP Presisi will offset losses from the drop in PP Presisi's long position.| Pelayaran Nelly vs. Trans Power Marine | Pelayaran Nelly vs. Pelita Samudera Shipping | Pelayaran Nelly vs. Samudera Indonesia Tbk | Pelayaran Nelly vs. Mitrabahtera Segara Sejati |
| PP Presisi vs. Matahari Department Store | PP Presisi vs. Multi Medika Internasional | PP Presisi vs. Visi Media Asia | PP Presisi vs. Bayan Resources 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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