Correlation Between PP Properti and Repower Asia
Can any of the company-specific risk be diversified away by investing in both PP Properti and Repower Asia 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 Repower Asia 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 Repower Asia Indonesia, you can compare the effects of market volatilities on PP Properti and Repower Asia 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 Repower Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PP Properti and Repower Asia.
Diversification Opportunities for PP Properti and Repower Asia
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PPRO and Repower is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding PP Properti Tbk and Repower Asia Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repower Asia Indonesia 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 Repower Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repower Asia Indonesia has no effect on the direction of PP Properti i.e., PP Properti and Repower Asia go up and down completely randomly.
Pair Corralation between PP Properti and Repower Asia
If you would invest 800.00 in Repower Asia Indonesia on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Repower Asia Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PP Properti Tbk vs. Repower Asia Indonesia
Performance |
| Timeline |
| PP Properti Tbk |
| Repower Asia Indonesia |
PP Properti and Repower Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PP Properti and Repower Asia
The main advantage of trading using opposite PP Properti and Repower Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PP Properti position performs unexpectedly, Repower Asia 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 Repower Asia will offset losses from the drop in Repower Asia's long position.| PP Properti vs. Wijaya Karya Beton | PP Properti vs. Pembangunan Perumahan PT | PP Properti vs. Waskita Beton Precast | PP Properti vs. Semen Baturaja Persero |
| Repower Asia vs. Bumi Benowo Sukses | Repower Asia vs. Andalan Sakti Primaindo | Repower Asia vs. Bhakti Multi Artha | Repower Asia vs. Greenwood Sejahtera 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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