Correlation Between Pollux Investasi and Adhi Commuter
Can any of the company-specific risk be diversified away by investing in both Pollux Investasi and Adhi Commuter 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 Pollux Investasi and Adhi Commuter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pollux Investasi Internasional and Adhi Commuter Properti, you can compare the effects of market volatilities on Pollux Investasi and Adhi Commuter 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 Pollux Investasi with a short position of Adhi Commuter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Investasi and Adhi Commuter.
Diversification Opportunities for Pollux Investasi and Adhi Commuter
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pollux and Adhi is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Pollux Investasi Internasional and Adhi Commuter Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adhi Commuter Properti and Pollux Investasi 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 Pollux Investasi Internasional are associated (or correlated) with Adhi Commuter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adhi Commuter Properti has no effect on the direction of Pollux Investasi i.e., Pollux Investasi and Adhi Commuter go up and down completely randomly.
Pair Corralation between Pollux Investasi and Adhi Commuter
Assuming the 90 days trading horizon Pollux Investasi Internasional is expected to generate 2.56 times more return on investment than Adhi Commuter. However, Pollux Investasi is 2.56 times more volatile than Adhi Commuter Properti. It trades about 0.01 of its potential returns per unit of risk. Adhi Commuter Properti is currently generating about -0.01 per unit of risk. If you would invest 84,500 in Pollux Investasi Internasional on August 27, 2024 and sell it today you would lose (4,500) from holding Pollux Investasi Internasional or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.15% |
| Values | Daily Returns |
Pollux Investasi Internasional vs. Adhi Commuter Properti
Performance |
| Timeline |
| Pollux Investasi Int |
| Adhi Commuter Properti |
Pollux Investasi and Adhi Commuter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pollux Investasi and Adhi Commuter
The main advantage of trading using opposite Pollux Investasi and Adhi Commuter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pollux Investasi position performs unexpectedly, Adhi Commuter 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 Adhi Commuter will offset losses from the drop in Adhi Commuter's long position.| Pollux Investasi vs. Jaya Sukses Makmur | Pollux Investasi vs. Modernland Realty Ltd | Pollux Investasi vs. Suryamas Dutamakmur Tbk | Pollux Investasi vs. Natura City Developments |
| Adhi Commuter vs. Jaya Sukses Makmur | Adhi Commuter vs. Modernland Realty Ltd | Adhi Commuter vs. Suryamas Dutamakmur Tbk | Adhi Commuter vs. Natura City Developments |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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