Correlation Between Prima Alloy and PT Boston
Can any of the company-specific risk be diversified away by investing in both Prima Alloy and PT Boston 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 Prima Alloy and PT Boston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prima Alloy Steel and PT Boston Furniture, you can compare the effects of market volatilities on Prima Alloy and PT Boston 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 Prima Alloy with a short position of PT Boston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prima Alloy and PT Boston.
Diversification Opportunities for Prima Alloy and PT Boston
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prima and SOFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prima Alloy Steel and PT Boston Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Boston Furniture and Prima Alloy 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 Prima Alloy Steel are associated (or correlated) with PT Boston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Boston Furniture has no effect on the direction of Prima Alloy i.e., Prima Alloy and PT Boston go up and down completely randomly.
Pair Corralation between Prima Alloy and PT Boston
If you would invest 1,900 in PT Boston Furniture on September 2, 2024 and sell it today you would earn a total of 1,700 from holding PT Boston Furniture or generate 89.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Prima Alloy Steel vs. PT Boston Furniture
Performance |
| Timeline |
| Prima Alloy Steel |
| PT Boston Furniture |
Prima Alloy and PT Boston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prima Alloy and PT Boston
The main advantage of trading using opposite Prima Alloy and PT Boston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prima Alloy position performs unexpectedly, PT Boston 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 Boston will offset losses from the drop in PT Boston's long position.| Prima Alloy vs. Pan Brothers Tbk | Prima Alloy vs. Ricky Putra Globalindo | Prima Alloy vs. Asia Pacific Fibers | Prima Alloy vs. Multi Prima Sejahtera |
| PT Boston vs. Pt Pradiksi Gunatama | PT Boston vs. Sunindo Adipersada Tbk | PT Boston vs. Planet Properindo Jaya | PT Boston vs. Pt Pakuan 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 Stocks Directory module to find actively traded stocks across global markets.
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