Correlation Between Pudjiadi Prestige and Ciputra Development
Can any of the company-specific risk be diversified away by investing in both Pudjiadi Prestige and Ciputra Development 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 Pudjiadi Prestige and Ciputra Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pudjiadi Prestige Tbk and Ciputra Development Tbk, you can compare the effects of market volatilities on Pudjiadi Prestige and Ciputra Development 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 Pudjiadi Prestige with a short position of Ciputra Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pudjiadi Prestige and Ciputra Development.
Diversification Opportunities for Pudjiadi Prestige and Ciputra Development
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pudjiadi and Ciputra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pudjiadi Prestige Tbk and Ciputra Development Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciputra Development Tbk and Pudjiadi Prestige 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 Pudjiadi Prestige Tbk are associated (or correlated) with Ciputra Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciputra Development Tbk has no effect on the direction of Pudjiadi Prestige i.e., Pudjiadi Prestige and Ciputra Development go up and down completely randomly.
Pair Corralation between Pudjiadi Prestige and Ciputra Development
Assuming the 90 days trading horizon Pudjiadi Prestige Tbk is expected to generate 3.47 times more return on investment than Ciputra Development. However, Pudjiadi Prestige is 3.47 times more volatile than Ciputra Development Tbk. It trades about 0.13 of its potential returns per unit of risk. Ciputra Development Tbk is currently generating about -0.25 per unit of risk. If you would invest 21,800 in Pudjiadi Prestige Tbk on August 28, 2024 and sell it today you would earn a total of 4,800 from holding Pudjiadi Prestige Tbk or generate 22.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pudjiadi Prestige Tbk vs. Ciputra Development Tbk
Performance |
| Timeline |
| Pudjiadi Prestige Tbk |
| Ciputra Development Tbk |
Pudjiadi Prestige and Ciputra Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pudjiadi Prestige and Ciputra Development
The main advantage of trading using opposite Pudjiadi Prestige and Ciputra Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pudjiadi Prestige position performs unexpectedly, Ciputra Development 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 Ciputra Development will offset losses from the drop in Ciputra Development's long position.| Pudjiadi Prestige vs. Ristia Bintang Mahkotasejati | Pudjiadi Prestige vs. Suryamas Dutamakmur Tbk | Pudjiadi Prestige vs. Pikko Land Development | Pudjiadi Prestige vs. Hotel Sahid Jaya |
| Ciputra Development vs. Summarecon Agung Tbk | Ciputra Development vs. Bumi Serpong Damai | Ciputra Development vs. Adhi Karya Persero | Ciputra Development vs. Wijaya Karya Beton |
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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