Correlation Between Aesler Grup and City Retail
Can any of the company-specific risk be diversified away by investing in both Aesler Grup and City Retail 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 City Retail 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 City Retail Developments, you can compare the effects of market volatilities on Aesler Grup and City Retail 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 City Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesler Grup and City Retail.
Diversification Opportunities for Aesler Grup and City Retail
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aesler and City is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aesler Grup Internasional and City Retail Developments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Retail Developments 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 City Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Retail Developments has no effect on the direction of Aesler Grup i.e., Aesler Grup and City Retail go up and down completely randomly.
Pair Corralation between Aesler Grup and City Retail
Assuming the 90 days trading horizon Aesler Grup Internasional is expected to generate 15.39 times more return on investment than City Retail. However, Aesler Grup is 15.39 times more volatile than City Retail Developments. It trades about 0.05 of its potential returns per unit of risk. City Retail Developments is currently generating about -0.05 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 | Significant |
| Accuracy | 99.69% |
| Values | Daily Returns |
Aesler Grup Internasional vs. City Retail Developments
Performance |
| Timeline |
| Aesler Grup Internasional |
| City Retail Developments |
Aesler Grup and City Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesler Grup and City Retail
The main advantage of trading using opposite Aesler Grup and City Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesler Grup position performs unexpectedly, City Retail 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 City Retail will offset losses from the drop in City Retail'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 |
| City Retail vs. Ciputra Development Tbk | City Retail vs. Bumi Serpong Damai | City Retail vs. Alam Sutera Realty | City Retail vs. Lippo Karawaci 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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