Correlation Between Pt Pradiksi and Putra Mandiri
Can any of the company-specific risk be diversified away by investing in both Pt Pradiksi and Putra Mandiri 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 Putra Mandiri 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 Putra Mandiri Jembar, you can compare the effects of market volatilities on Pt Pradiksi and Putra Mandiri 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 Putra Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pradiksi and Putra Mandiri.
Diversification Opportunities for Pt Pradiksi and Putra Mandiri
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between PGUN and Putra is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pradiksi Gunatama and Putra Mandiri Jembar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putra Mandiri Jembar 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 Putra Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putra Mandiri Jembar has no effect on the direction of Pt Pradiksi i.e., Pt Pradiksi and Putra Mandiri go up and down completely randomly.
Pair Corralation between Pt Pradiksi and Putra Mandiri
Assuming the 90 days trading horizon Pt Pradiksi Gunatama is expected to generate 2.77 times more return on investment than Putra Mandiri. However, Pt Pradiksi is 2.77 times more volatile than Putra Mandiri Jembar. It trades about 0.69 of its potential returns per unit of risk. Putra Mandiri Jembar is currently generating about 0.01 per unit of risk. If you would invest 42,400 in Pt Pradiksi Gunatama on November 5, 2024 and sell it today you would earn a total of 31,100 from holding Pt Pradiksi Gunatama or generate 73.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pt Pradiksi Gunatama vs. Putra Mandiri Jembar
Performance |
| Timeline |
| Pt Pradiksi Gunatama |
| Putra Mandiri Jembar |
Pt Pradiksi and Putra Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pt Pradiksi and Putra Mandiri
The main advantage of trading using opposite Pt Pradiksi and Putra Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pradiksi position performs unexpectedly, Putra Mandiri 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 Putra Mandiri will offset losses from the drop in Putra Mandiri's long position.| Pt Pradiksi vs. Triputra Agro Persada | Pt Pradiksi vs. Dayamitra Telekomunikasi PT | Pt Pradiksi vs. RMK Energy PT | Pt Pradiksi vs. Dharma Satya Nusantara |
| Putra Mandiri vs. Uni Charm Indonesia | Putra Mandiri vs. MNC Studios International | Putra Mandiri vs. Kencana Energi Lestari | Putra Mandiri vs. Bintang Oto Global |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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