Correlation Between Pudjiadi Prestige and Indonesia Prima
Can any of the company-specific risk be diversified away by investing in both Pudjiadi Prestige and Indonesia Prima 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 Indonesia Prima 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 Indonesia Prima Property, you can compare the effects of market volatilities on Pudjiadi Prestige and Indonesia Prima 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 Indonesia Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pudjiadi Prestige and Indonesia Prima.
Diversification Opportunities for Pudjiadi Prestige and Indonesia Prima
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pudjiadi and Indonesia is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Pudjiadi Prestige Tbk and Indonesia Prima Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indonesia Prima Property 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 Indonesia Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indonesia Prima Property has no effect on the direction of Pudjiadi Prestige i.e., Pudjiadi Prestige and Indonesia Prima go up and down completely randomly.
Pair Corralation between Pudjiadi Prestige and Indonesia Prima
If you would invest 21,800 in Pudjiadi Prestige Tbk on August 28, 2024 and sell it today you would earn a total of 6,200 from holding Pudjiadi Prestige Tbk or generate 28.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pudjiadi Prestige Tbk vs. Indonesia Prima Property
Performance |
| Timeline |
| Pudjiadi Prestige Tbk |
| Indonesia Prima Property |
Pudjiadi Prestige and Indonesia Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pudjiadi Prestige and Indonesia Prima
The main advantage of trading using opposite Pudjiadi Prestige and Indonesia Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pudjiadi Prestige position performs unexpectedly, Indonesia Prima 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 Indonesia Prima will offset losses from the drop in Indonesia Prima'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 |
| Indonesia Prima vs. Karya Bersama Anugerah | Indonesia Prima vs. Andalan Sakti Primaindo | Indonesia Prima vs. Perintis Triniti Properti | Indonesia Prima vs. Repower Asia Indonesia |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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