Correlation Between Pembangunan Graha and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha and Citatah Tbk 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 Pembangunan Graha and Citatah Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembangunan Graha Lestari and Citatah Tbk, you can compare the effects of market volatilities on Pembangunan Graha and Citatah Tbk 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 Pembangunan Graha with a short position of Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Citatah Tbk.
Diversification Opportunities for Pembangunan Graha and Citatah Tbk
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pembangunan and Citatah is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah Tbk and Pembangunan Graha 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 Pembangunan Graha Lestari are associated (or correlated) with Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of Pembangunan Graha i.e., Pembangunan Graha and Citatah Tbk go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Citatah Tbk
Assuming the 90 days trading horizon Pembangunan Graha Lestari is expected to under-perform the Citatah Tbk. In addition to that, Pembangunan Graha is 1.74 times more volatile than Citatah Tbk. It trades about -0.16 of its total potential returns per unit of risk. Citatah Tbk is currently generating about 0.22 per unit of volatility. If you would invest 2,400 in Citatah Tbk on September 19, 2024 and sell it today you would earn a total of 200.00 from holding Citatah Tbk or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Citatah Tbk
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Citatah Tbk |
Pembangunan Graha and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Citatah Tbk
The main advantage of trading using opposite Pembangunan Graha and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha position performs unexpectedly, Citatah Tbk 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 Citatah Tbk will offset losses from the drop in Citatah Tbk's long position.| Pembangunan Graha vs. Red Planet Indonesia | Pembangunan Graha vs. Pudjiadi Sons Tbk | Pembangunan Graha vs. Pembangunan Jaya Ancol | Pembangunan Graha vs. Pioneerindo Gourmet International |
| Citatah Tbk vs. Kedaung Indah Can | Citatah Tbk vs. Kabelindo Murni Tbk | Citatah Tbk vs. Champion Pacific Indonesia | Citatah Tbk vs. Bhuwanatala Indah Permai |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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