Correlation Between Indonesia Prima and Pudjiadi Prestige
Can any of the company-specific risk be diversified away by investing in both Indonesia Prima and Pudjiadi Prestige 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 Indonesia Prima and Pudjiadi Prestige into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indonesia Prima Property and Pudjiadi Prestige Tbk, you can compare the effects of market volatilities on Indonesia Prima and Pudjiadi Prestige 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 Indonesia Prima with a short position of Pudjiadi Prestige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indonesia Prima and Pudjiadi Prestige.
Diversification Opportunities for Indonesia Prima and Pudjiadi Prestige
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Indonesia and Pudjiadi is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Indonesia Prima Property and Pudjiadi Prestige Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pudjiadi Prestige Tbk and Indonesia Prima 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 Indonesia Prima Property are associated (or correlated) with Pudjiadi Prestige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pudjiadi Prestige Tbk has no effect on the direction of Indonesia Prima i.e., Indonesia Prima and Pudjiadi Prestige go up and down completely randomly.
Pair Corralation between Indonesia Prima and Pudjiadi Prestige
If you would invest 21,800 in Pudjiadi Prestige Tbk on August 28, 2024 and sell it today you would earn a total of 4,800 from holding Pudjiadi Prestige Tbk or generate 22.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indonesia Prima Property vs. Pudjiadi Prestige Tbk
Performance |
| Timeline |
| Indonesia Prima Property |
| Pudjiadi Prestige Tbk |
Indonesia Prima and Pudjiadi Prestige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indonesia Prima and Pudjiadi Prestige
The main advantage of trading using opposite Indonesia Prima and Pudjiadi Prestige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indonesia Prima position performs unexpectedly, Pudjiadi Prestige 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 Pudjiadi Prestige will offset losses from the drop in Pudjiadi Prestige's long position.| Indonesia Prima vs. Karya Bersama Anugerah | Indonesia Prima vs. Andalan Sakti Primaindo | Indonesia Prima vs. Perintis Triniti Properti | Indonesia Prima vs. Repower Asia Indonesia |
| Pudjiadi Prestige vs. Ristia Bintang Mahkotasejati | Pudjiadi Prestige vs. Suryamas Dutamakmur Tbk | Pudjiadi Prestige vs. Pikko Land Development | Pudjiadi Prestige vs. Hotel Sahid Jaya |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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