Correlation Between Ricky Putra and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both Ricky Putra and Asia Pacific 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 Ricky Putra and Asia Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ricky Putra Globalindo and Asia Pacific Investama, you can compare the effects of market volatilities on Ricky Putra and Asia Pacific 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 Ricky Putra with a short position of Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ricky Putra and Asia Pacific.
Diversification Opportunities for Ricky Putra and Asia Pacific
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ricky and Asia is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ricky Putra Globalindo and Asia Pacific Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investama and Ricky Putra 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 Ricky Putra Globalindo are associated (or correlated) with Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investama has no effect on the direction of Ricky Putra i.e., Ricky Putra and Asia Pacific go up and down completely randomly.
Pair Corralation between Ricky Putra and Asia Pacific
Assuming the 90 days trading horizon Ricky Putra Globalindo is expected to generate 0.53 times more return on investment than Asia Pacific. However, Ricky Putra Globalindo is 1.9 times less risky than Asia Pacific. It trades about -0.18 of its potential returns per unit of risk. Asia Pacific Investama is currently generating about -0.11 per unit of risk. If you would invest 7,900 in Ricky Putra Globalindo on September 2, 2024 and sell it today you would lose (500.00) from holding Ricky Putra Globalindo or give up 6.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ricky Putra Globalindo vs. Asia Pacific Investama
Performance |
| Timeline |
| Ricky Putra Globalindo |
| Asia Pacific Investama |
Ricky Putra and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ricky Putra and Asia Pacific
The main advantage of trading using opposite Ricky Putra and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ricky Putra position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.| Ricky Putra vs. Japfa Comfeed Indonesia | Ricky Putra vs. Charoen Pokphand Indonesia | Ricky Putra vs. Erajaya Swasembada Tbk | Ricky Putra vs. Indofood Cbp Sukses |
| Asia Pacific vs. Pan Brothers Tbk | Asia Pacific vs. Asia Pacific Fibers | Asia Pacific vs. Ricky Putra Globalindo | Asia Pacific vs. Prima Alloy Steel |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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