Correlation Between Pudjiadi Sons and PT Puri
Can any of the company-specific risk be diversified away by investing in both Pudjiadi Sons and PT Puri 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 Pudjiadi Sons and PT Puri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pudjiadi Sons Tbk and PT Puri Sentul, you can compare the effects of market volatilities on Pudjiadi Sons and PT Puri 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 Pudjiadi Sons with a short position of PT Puri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pudjiadi Sons and PT Puri.
Diversification Opportunities for Pudjiadi Sons and PT Puri
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pudjiadi and KDTN is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pudjiadi Sons Tbk and PT Puri Sentul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Puri Sentul and Pudjiadi Sons 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 Pudjiadi Sons Tbk are associated (or correlated) with PT Puri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Puri Sentul has no effect on the direction of Pudjiadi Sons i.e., Pudjiadi Sons and PT Puri go up and down completely randomly.
Pair Corralation between Pudjiadi Sons and PT Puri
Assuming the 90 days trading horizon Pudjiadi Sons Tbk is expected to generate 3.08 times more return on investment than PT Puri. However, Pudjiadi Sons is 3.08 times more volatile than PT Puri Sentul. It trades about 0.46 of its potential returns per unit of risk. PT Puri Sentul is currently generating about -0.15 per unit of risk. If you would invest 45,400 in Pudjiadi Sons Tbk on August 30, 2024 and sell it today you would earn a total of 90,600 from holding Pudjiadi Sons Tbk or generate 199.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pudjiadi Sons Tbk vs. PT Puri Sentul
Performance |
| Timeline |
| Pudjiadi Sons Tbk |
| PT Puri Sentul |
Pudjiadi Sons and PT Puri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pudjiadi Sons and PT Puri
The main advantage of trading using opposite Pudjiadi Sons and PT Puri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pudjiadi Sons position performs unexpectedly, PT Puri 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 PT Puri will offset losses from the drop in PT Puri's long position.| Pudjiadi Sons vs. HK Metals Utama | Pudjiadi Sons vs. Alumindo Light Metal | Pudjiadi Sons vs. PT Data Sinergitama | Pudjiadi Sons vs. Ciptadana Asset Management |
| PT Puri vs. PT Dewi Shri | PT Puri vs. Bangun Karya Perkasa | PT Puri vs. Gaya Abadi Sempurna | PT Puri vs. Habco Trans Maritima |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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