Correlation Between Chandra Asri and Transportadora
Can any of the company-specific risk be diversified away by investing in both Chandra Asri and Transportadora 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 Chandra Asri and Transportadora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chandra Asri Petrochemical and Transportadora de Gas, you can compare the effects of market volatilities on Chandra Asri and Transportadora 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 Chandra Asri with a short position of Transportadora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chandra Asri and Transportadora.
Diversification Opportunities for Chandra Asri and Transportadora
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chandra and Transportadora is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Chandra Asri Petrochemical and Transportadora de Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportadora de Gas and Chandra Asri 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 Chandra Asri Petrochemical are associated (or correlated) with Transportadora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportadora de Gas has no effect on the direction of Chandra Asri i.e., Chandra Asri and Transportadora go up and down completely randomly.
Pair Corralation between Chandra Asri and Transportadora
Assuming the 90 days horizon Chandra Asri Petrochemical is expected to generate 9.34 times more return on investment than Transportadora. However, Chandra Asri is 9.34 times more volatile than Transportadora de Gas. It trades about 0.08 of its potential returns per unit of risk. Transportadora de Gas is currently generating about 0.09 per unit of risk. If you would invest 451.00 in Chandra Asri Petrochemical on September 5, 2024 and sell it today you would earn a total of 5,810 from holding Chandra Asri Petrochemical or generate 1288.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.41% |
| Values | Daily Returns |
Chandra Asri Petrochemical vs. Transportadora de Gas
Performance |
| Timeline |
| Chandra Asri Petroch |
| Transportadora de Gas |
Chandra Asri and Transportadora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chandra Asri and Transportadora
The main advantage of trading using opposite Chandra Asri and Transportadora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chandra Asri position performs unexpectedly, Transportadora 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 Transportadora will offset losses from the drop in Transportadora's long position.| Chandra Asri vs. Transportadora de Gas | Chandra Asri vs. Empresa Distribuidora y | Chandra Asri vs. Cheniere Energy Partners | Chandra Asri vs. Ryanair Holdings PLC |
| Transportadora vs. Petroleo Brasileiro Petrobras | Transportadora vs. Ecopetrol SA ADR | Transportadora vs. Petrleo Brasileiro SA | Transportadora vs. Equinor ASA ADR |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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