Correlation Between Pelangi Indah and Unggul Indah
Can any of the company-specific risk be diversified away by investing in both Pelangi Indah and Unggul Indah 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 Pelangi Indah and Unggul Indah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pelangi Indah Canindo and Unggul Indah Cahaya, you can compare the effects of market volatilities on Pelangi Indah and Unggul Indah 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 Pelangi Indah with a short position of Unggul Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelangi Indah and Unggul Indah.
Diversification Opportunities for Pelangi Indah and Unggul Indah
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pelangi and Unggul is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Pelangi Indah Canindo and Unggul Indah Cahaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unggul Indah Cahaya and Pelangi Indah 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 Pelangi Indah Canindo are associated (or correlated) with Unggul Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unggul Indah Cahaya has no effect on the direction of Pelangi Indah i.e., Pelangi Indah and Unggul Indah go up and down completely randomly.
Pair Corralation between Pelangi Indah and Unggul Indah
Assuming the 90 days trading horizon Pelangi Indah Canindo is expected to generate 1.47 times more return on investment than Unggul Indah. However, Pelangi Indah is 1.47 times more volatile than Unggul Indah Cahaya. It trades about -0.04 of its potential returns per unit of risk. Unggul Indah Cahaya is currently generating about -0.16 per unit of risk. If you would invest 12,300 in Pelangi Indah Canindo on November 27, 2024 and sell it today you would lose (200.00) from holding Pelangi Indah Canindo or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pelangi Indah Canindo vs. Unggul Indah Cahaya
Performance |
| Timeline |
| Pelangi Indah Canindo |
| Unggul Indah Cahaya |
Pelangi Indah and Unggul Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pelangi Indah and Unggul Indah
The main advantage of trading using opposite Pelangi Indah and Unggul Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pelangi Indah position performs unexpectedly, Unggul Indah 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 Unggul Indah will offset losses from the drop in Unggul Indah's long position.| Pelangi Indah vs. Lionmesh Prima Tbk | Pelangi Indah vs. PT Mulia Industrindo | Pelangi Indah vs. Lion Metal Works | Pelangi Indah vs. Tembaga Mulia Semanan |
| Unggul Indah vs. Trias Sentosa Tbk | Unggul Indah vs. Suparma Tbk | Unggul Indah vs. Tembaga Mulia Semanan | Unggul Indah vs. Surya Toto Indonesia |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |