Correlation Between Putra Mandiri and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Putra Mandiri 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 Putra Mandiri and Citatah Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putra Mandiri Jembar and Citatah Tbk, you can compare the effects of market volatilities on Putra Mandiri 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 Putra Mandiri with a short position of Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putra Mandiri and Citatah Tbk.
Diversification Opportunities for Putra Mandiri and Citatah Tbk
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putra and Citatah is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Putra Mandiri Jembar and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah Tbk and Putra Mandiri 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 Putra Mandiri Jembar 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 Putra Mandiri i.e., Putra Mandiri and Citatah Tbk go up and down completely randomly.
Pair Corralation between Putra Mandiri and Citatah Tbk
Assuming the 90 days trading horizon Putra Mandiri Jembar is expected to under-perform the Citatah Tbk. In addition to that, Putra Mandiri is 1.19 times more volatile than Citatah Tbk. It trades about -0.01 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putra Mandiri Jembar vs. Citatah Tbk
Performance |
| Timeline |
| Putra Mandiri Jembar |
| Citatah Tbk |
Putra Mandiri and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putra Mandiri and Citatah Tbk
The main advantage of trading using opposite Putra Mandiri and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putra Mandiri 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.| Putra Mandiri vs. MNC Studios International | Putra Mandiri vs. Jaya Sukses Makmur | Putra Mandiri vs. Mitrabara Adiperdana PT | Putra Mandiri vs. PT Multi Garam |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |