Correlation Between City Retail and Cottonindo Ariesta
Can any of the company-specific risk be diversified away by investing in both City Retail and Cottonindo Ariesta 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 City Retail and Cottonindo Ariesta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Retail Developments and Cottonindo Ariesta Tbk, you can compare the effects of market volatilities on City Retail and Cottonindo Ariesta 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 City Retail with a short position of Cottonindo Ariesta. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Retail and Cottonindo Ariesta.
Diversification Opportunities for City Retail and Cottonindo Ariesta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between City and Cottonindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding City Retail Developments and Cottonindo Ariesta Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cottonindo Ariesta Tbk and City Retail 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 City Retail Developments are associated (or correlated) with Cottonindo Ariesta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cottonindo Ariesta Tbk has no effect on the direction of City Retail i.e., City Retail and Cottonindo Ariesta go up and down completely randomly.
Pair Corralation between City Retail and Cottonindo Ariesta
If you would invest 6,200 in Cottonindo Ariesta Tbk on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Cottonindo Ariesta Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Retail Developments vs. Cottonindo Ariesta Tbk
Performance |
| Timeline |
| City Retail Developments |
| Cottonindo Ariesta Tbk |
City Retail and Cottonindo Ariesta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Retail and Cottonindo Ariesta
The main advantage of trading using opposite City Retail and Cottonindo Ariesta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Retail position performs unexpectedly, Cottonindo Ariesta 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 Cottonindo Ariesta will offset losses from the drop in Cottonindo Ariesta's long position.| City Retail vs. Ciputra Development Tbk | City Retail vs. Bumi Serpong Damai | City Retail vs. Alam Sutera Realty | City Retail vs. Lippo Karawaci Tbk |
| Cottonindo Ariesta vs. PT Data Sinergitama | Cottonindo Ariesta vs. Humpuss Intermoda Transportasi | Cottonindo Ariesta vs. Lippo General Insurance | Cottonindo Ariesta vs. Garuda Metalindo 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 CEOs Directory module to screen CEOs from public companies around the world.
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