Correlation Between Ricky Putra and Supreme Cable
Can any of the company-specific risk be diversified away by investing in both Ricky Putra and Supreme Cable 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 Supreme Cable 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 Supreme Cable Manufacturing, you can compare the effects of market volatilities on Ricky Putra and Supreme Cable 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 Supreme Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ricky Putra and Supreme Cable.
Diversification Opportunities for Ricky Putra and Supreme Cable
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ricky and Supreme is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ricky Putra Globalindo and Supreme Cable Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supreme Cable Manufa 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 Supreme Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supreme Cable Manufa has no effect on the direction of Ricky Putra i.e., Ricky Putra and Supreme Cable go up and down completely randomly.
Pair Corralation between Ricky Putra and Supreme Cable
Assuming the 90 days trading horizon Ricky Putra Globalindo is expected to under-perform the Supreme Cable. In addition to that, Ricky Putra is 1.59 times more volatile than Supreme Cable Manufacturing. It trades about -0.13 of its total potential returns per unit of risk. Supreme Cable Manufacturing is currently generating about -0.15 per unit of volatility. If you would invest 212,000 in Supreme Cable Manufacturing on November 18, 2024 and sell it today you would lose (7,000) from holding Supreme Cable Manufacturing or give up 3.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ricky Putra Globalindo vs. Supreme Cable Manufacturing
Performance |
| Timeline |
| Ricky Putra Globalindo |
| Supreme Cable Manufa |
Ricky Putra and Supreme Cable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ricky Putra and Supreme Cable
The main advantage of trading using opposite Ricky Putra and Supreme Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ricky Putra position performs unexpectedly, Supreme Cable 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 Supreme Cable will offset losses from the drop in Supreme Cable'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 |
| Supreme Cable vs. Voksel Electric Tbk | Supreme Cable vs. Kmi Wire And | Supreme Cable vs. Kabelindo Murni Tbk | Supreme Cable vs. Selamat Sempurna 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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