Correlation Between Ricky Putra and Roda Vivatex
Can any of the company-specific risk be diversified away by investing in both Ricky Putra and Roda Vivatex 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 Roda Vivatex 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 Roda Vivatex Tbk, you can compare the effects of market volatilities on Ricky Putra and Roda Vivatex 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 Roda Vivatex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ricky Putra and Roda Vivatex.
Diversification Opportunities for Ricky Putra and Roda Vivatex
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ricky and Roda is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ricky Putra Globalindo and Roda Vivatex Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roda Vivatex Tbk 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 Roda Vivatex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roda Vivatex Tbk has no effect on the direction of Ricky Putra i.e., Ricky Putra and Roda Vivatex go up and down completely randomly.
Pair Corralation between Ricky Putra and Roda Vivatex
Assuming the 90 days trading horizon Ricky Putra is expected to generate 6.64 times less return on investment than Roda Vivatex. In addition to that, Ricky Putra is 1.57 times more volatile than Roda Vivatex Tbk. It trades about 0.01 of its total potential returns per unit of risk. Roda Vivatex Tbk is currently generating about 0.07 per unit of volatility. If you would invest 747,678 in Roda Vivatex Tbk on August 24, 2024 and sell it today you would earn a total of 752,322 from holding Roda Vivatex Tbk or generate 100.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ricky Putra Globalindo vs. Roda Vivatex Tbk
Performance |
| Timeline |
| Ricky Putra Globalindo |
| Roda Vivatex Tbk |
Ricky Putra and Roda Vivatex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ricky Putra and Roda Vivatex
The main advantage of trading using opposite Ricky Putra and Roda Vivatex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ricky Putra position performs unexpectedly, Roda Vivatex 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 Roda Vivatex will offset losses from the drop in Roda Vivatex's long position.| Ricky Putra vs. Pan Brothers Tbk | Ricky Putra vs. Sunson Textile Manufacturer | Ricky Putra vs. Asia Pacific Fibers | Ricky Putra vs. Prima Alloy Steel |
| Roda Vivatex vs. Supreme Cable Manufacturing | Roda Vivatex vs. Ristia Bintang Mahkotasejati | Roda Vivatex vs. Ricky Putra Globalindo | Roda Vivatex vs. Suryamas Dutamakmur Tbk |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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