Correlation Between Aesler Grup and Eastparc Hotel
Can any of the company-specific risk be diversified away by investing in both Aesler Grup and Eastparc Hotel 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 Aesler Grup and Eastparc Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aesler Grup Internasional and Eastparc Hotel Tbk, you can compare the effects of market volatilities on Aesler Grup and Eastparc Hotel 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 Aesler Grup with a short position of Eastparc Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesler Grup and Eastparc Hotel.
Diversification Opportunities for Aesler Grup and Eastparc Hotel
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aesler and Eastparc is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aesler Grup Internasional and Eastparc Hotel Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastparc Hotel Tbk and Aesler Grup 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 Aesler Grup Internasional are associated (or correlated) with Eastparc Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastparc Hotel Tbk has no effect on the direction of Aesler Grup i.e., Aesler Grup and Eastparc Hotel go up and down completely randomly.
Pair Corralation between Aesler Grup and Eastparc Hotel
Assuming the 90 days trading horizon Aesler Grup Internasional is expected to generate 3.39 times more return on investment than Eastparc Hotel. However, Aesler Grup is 3.39 times more volatile than Eastparc Hotel Tbk. It trades about 0.05 of its potential returns per unit of risk. Eastparc Hotel Tbk is currently generating about -0.02 per unit of risk. If you would invest 72,000 in Aesler Grup Internasional on September 12, 2024 and sell it today you would earn a total of 28,500 from holding Aesler Grup Internasional or generate 39.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.69% |
| Values | Daily Returns |
Aesler Grup Internasional vs. Eastparc Hotel Tbk
Performance |
| Timeline |
| Aesler Grup Internasional |
| Eastparc Hotel Tbk |
Aesler Grup and Eastparc Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesler Grup and Eastparc Hotel
The main advantage of trading using opposite Aesler Grup and Eastparc Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesler Grup position performs unexpectedly, Eastparc Hotel 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 Eastparc Hotel will offset losses from the drop in Eastparc Hotel's long position.| Aesler Grup vs. Siloam International Hospitals | Aesler Grup vs. Hoffmen Cleanindo | Aesler Grup vs. First Media Tbk | Aesler Grup vs. City Retail Developments |
| Eastparc Hotel vs. Menteng Heritage Realty | Eastparc Hotel vs. Hotel Fitra International | Eastparc Hotel vs. Jasa Armada Indonesia | Eastparc Hotel vs. Cahayaputra Asa Keramik |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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