Correlation Between Putra Rajawali and Karya Bersama
Can any of the company-specific risk be diversified away by investing in both Putra Rajawali and Karya Bersama 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 Putra Rajawali and Karya Bersama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putra Rajawali Kencana and Karya Bersama Anugerah, you can compare the effects of market volatilities on Putra Rajawali and Karya Bersama 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 Putra Rajawali with a short position of Karya Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putra Rajawali and Karya Bersama.
Diversification Opportunities for Putra Rajawali and Karya Bersama
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putra and Karya is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Putra Rajawali Kencana and Karya Bersama Anugerah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karya Bersama Anugerah and Putra Rajawali 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 Putra Rajawali Kencana are associated (or correlated) with Karya Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karya Bersama Anugerah has no effect on the direction of Putra Rajawali i.e., Putra Rajawali and Karya Bersama go up and down completely randomly.
Pair Corralation between Putra Rajawali and Karya Bersama
Assuming the 90 days trading horizon Putra Rajawali Kencana is expected to under-perform the Karya Bersama. In addition to that, Putra Rajawali is 1.57 times more volatile than Karya Bersama Anugerah. It trades about -0.09 of its total potential returns per unit of risk. Karya Bersama Anugerah is currently generating about 0.02 per unit of volatility. If you would invest 1,900 in Karya Bersama Anugerah on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Karya Bersama Anugerah or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putra Rajawali Kencana vs. Karya Bersama Anugerah
Performance |
| Timeline |
| Putra Rajawali Kencana |
| Karya Bersama Anugerah |
Putra Rajawali and Karya Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putra Rajawali and Karya Bersama
The main advantage of trading using opposite Putra Rajawali and Karya Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putra Rajawali position performs unexpectedly, Karya Bersama 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 Karya Bersama will offset losses from the drop in Karya Bersama's long position.| Putra Rajawali vs. Kapuas Prima Coal | Putra Rajawali vs. Karya Bersama Anugerah | Putra Rajawali vs. Era Mandiri Cemerlang | Putra Rajawali vs. PP Presisi Tbk |
| Karya Bersama vs. Putra Rajawali Kencana | Karya Bersama vs. Repower Asia Indonesia | Karya Bersama vs. DMS Propertindo Tbk | Karya Bersama vs. Perintis Triniti Properti |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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