Correlation Between Pt Pradiksi and Pratama Widya
Can any of the company-specific risk be diversified away by investing in both Pt Pradiksi and Pratama Widya 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 Pratama Widya 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 Pratama Widya Tbk, you can compare the effects of market volatilities on Pt Pradiksi and Pratama Widya 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 Pratama Widya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pradiksi and Pratama Widya.
Diversification Opportunities for Pt Pradiksi and Pratama Widya
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between PGUN and Pratama is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pradiksi Gunatama and Pratama Widya Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pratama Widya Tbk 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 Pratama Widya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pratama Widya Tbk has no effect on the direction of Pt Pradiksi i.e., Pt Pradiksi and Pratama Widya go up and down completely randomly.
Pair Corralation between Pt Pradiksi and Pratama Widya
If you would invest 42,400 in Pt Pradiksi Gunatama on September 4, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pt Pradiksi Gunatama vs. Pratama Widya Tbk
Performance |
| Timeline |
| Pt Pradiksi Gunatama |
| Pratama Widya Tbk |
Pt Pradiksi and Pratama Widya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pt Pradiksi and Pratama Widya
The main advantage of trading using opposite Pt Pradiksi and Pratama Widya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pradiksi position performs unexpectedly, Pratama Widya 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 Pratama Widya will offset losses from the drop in Pratama Widya's long position.| Pt Pradiksi vs. Dharma Satya Nusantara | Pt Pradiksi vs. Saratoga Investama Sedaya | Pt Pradiksi vs. Surya Esa Perkasa | Pt Pradiksi vs. Elang Mahkota Teknologi |
| Pratama Widya vs. Kencana Energi Lestari | Pratama Widya vs. Pelita Samudera Shipping | Pratama Widya vs. Paramita Bangun Sarana | Pratama Widya vs. Dana Brata Luhur |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |