Correlation Between Pratama Widya and Aesler Grup
Can any of the company-specific risk be diversified away by investing in both Pratama Widya and Aesler Grup 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 Pratama Widya and Aesler Grup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pratama Widya Tbk and Aesler Grup Internasional, you can compare the effects of market volatilities on Pratama Widya and Aesler Grup 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 Pratama Widya with a short position of Aesler Grup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pratama Widya and Aesler Grup.
Diversification Opportunities for Pratama Widya and Aesler Grup
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pratama and Aesler is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Pratama Widya Tbk and Aesler Grup Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aesler Grup Internasional and Pratama Widya 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 Pratama Widya Tbk are associated (or correlated) with Aesler Grup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aesler Grup Internasional has no effect on the direction of Pratama Widya i.e., Pratama Widya and Aesler Grup go up and down completely randomly.
Pair Corralation between Pratama Widya and Aesler Grup
Assuming the 90 days trading horizon Pratama Widya Tbk is expected to under-perform the Aesler Grup. But the stock apears to be less risky and, when comparing its historical volatility, Pratama Widya Tbk is 5.7 times less risky than Aesler Grup. The stock trades about -0.27 of its potential returns per unit of risk. The Aesler Grup Internasional is currently generating about 0.65 of returns per unit of risk over similar time horizon. If you would invest 63,500 in Aesler Grup Internasional on November 3, 2024 and sell it today you would earn a total of 118,000 from holding Aesler Grup Internasional or generate 185.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Pratama Widya Tbk vs. Aesler Grup Internasional
Performance |
| Timeline |
| Pratama Widya Tbk |
| Aesler Grup Internasional |
Pratama Widya and Aesler Grup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pratama Widya and Aesler Grup
The main advantage of trading using opposite Pratama Widya and Aesler Grup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pratama Widya position performs unexpectedly, Aesler Grup 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 Aesler Grup will offset losses from the drop in Aesler Grup's long position.| Pratama Widya vs. Kencana Energi Lestari | Pratama Widya vs. Pelita Samudera Shipping | Pratama Widya vs. Paramita Bangun Sarana | Pratama Widya vs. Dana Brata Luhur |
| Aesler Grup vs. Indo Acidatama Tbk | Aesler Grup vs. Dharma Polimetal Tbk | Aesler Grup vs. Humpuss Intermoda Transportasi | Aesler Grup vs. Hotel Sahid Jaya |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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