Correlation Between PP Properti and PP Presisi
Can any of the company-specific risk be diversified away by investing in both PP Properti and PP Presisi 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 PP Properti and PP Presisi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PP Properti Tbk and PP Presisi Tbk, you can compare the effects of market volatilities on PP Properti and PP Presisi 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 PP Properti with a short position of PP Presisi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PP Properti and PP Presisi.
Diversification Opportunities for PP Properti and PP Presisi
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PPRO and PPRE is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PP Properti Tbk and PP Presisi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PP Presisi Tbk and PP Properti 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 PP Properti Tbk are associated (or correlated) with PP Presisi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PP Presisi Tbk has no effect on the direction of PP Properti i.e., PP Properti and PP Presisi go up and down completely randomly.
Pair Corralation between PP Properti and PP Presisi
If you would invest 5,600 in PP Presisi Tbk on October 23, 2024 and sell it today you would earn a total of 0.00 from holding PP Presisi Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
PP Properti Tbk vs. PP Presisi Tbk
Performance |
| Timeline |
| PP Properti Tbk |
| PP Presisi Tbk |
PP Properti and PP Presisi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PP Properti and PP Presisi
The main advantage of trading using opposite PP Properti and PP Presisi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PP Properti position performs unexpectedly, PP Presisi 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 PP Presisi will offset losses from the drop in PP Presisi's long position.| PP Properti vs. Ciputra Development Tbk | PP Properti vs. Bumi Serpong Damai | PP Properti vs. Alam Sutera Realty | PP Properti vs. Lippo Karawaci Tbk |
| PP Presisi vs. Wijaya Karya Bangunan | PP Presisi vs. PP Properti Tbk | PP Presisi vs. Wijaya Karya Beton | PP Presisi vs. Soechi Lines Tbk |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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