Correlation Between Pt Pradiksi and Aman Agrindo
Can any of the company-specific risk be diversified away by investing in both Pt Pradiksi and Aman Agrindo 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 Pt Pradiksi and Aman Agrindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pt Pradiksi Gunatama and Aman Agrindo, you can compare the effects of market volatilities on Pt Pradiksi and Aman Agrindo 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 Pt Pradiksi with a short position of Aman Agrindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pradiksi and Aman Agrindo.
Diversification Opportunities for Pt Pradiksi and Aman Agrindo
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PGUN and Aman is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pradiksi Gunatama and Aman Agrindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aman Agrindo and Pt Pradiksi 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 Pt Pradiksi Gunatama are associated (or correlated) with Aman Agrindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aman Agrindo has no effect on the direction of Pt Pradiksi i.e., Pt Pradiksi and Aman Agrindo go up and down completely randomly.
Pair Corralation between Pt Pradiksi and Aman Agrindo
If you would invest 42,400 in Pt Pradiksi Gunatama on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Pt Pradiksi Gunatama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pt Pradiksi Gunatama vs. Aman Agrindo
Performance |
| Timeline |
| Pt Pradiksi Gunatama |
| Aman Agrindo |
Pt Pradiksi and Aman Agrindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pt Pradiksi and Aman Agrindo
The main advantage of trading using opposite Pt Pradiksi and Aman Agrindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pradiksi position performs unexpectedly, Aman Agrindo 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 Aman Agrindo will offset losses from the drop in Aman Agrindo's long position.| Pt Pradiksi vs. Putra Rajawali Kencana | Pt Pradiksi vs. Sinergi Inti Plastindo | Pt Pradiksi vs. Karya Bersama Anugerah | Pt Pradiksi vs. Jasnita Telekomindo Tbk |
| Aman Agrindo vs. Putra Rajawali Kencana | Aman Agrindo vs. Sinergi Inti Plastindo | Aman Agrindo vs. Karya Bersama Anugerah | Aman Agrindo vs. Jasnita Telekomindo 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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