Correlation Between Aesler Grup and Wijaya Karya
Can any of the company-specific risk be diversified away by investing in both Aesler Grup and Wijaya Karya 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 Wijaya Karya 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 Wijaya Karya Bangunan, you can compare the effects of market volatilities on Aesler Grup and Wijaya Karya 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 Wijaya Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesler Grup and Wijaya Karya.
Diversification Opportunities for Aesler Grup and Wijaya Karya
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aesler and Wijaya is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aesler Grup Internasional and Wijaya Karya Bangunan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wijaya Karya Bangunan 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 Wijaya Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wijaya Karya Bangunan has no effect on the direction of Aesler Grup i.e., Aesler Grup and Wijaya Karya go up and down completely randomly.
Pair Corralation between Aesler Grup and Wijaya Karya
Assuming the 90 days trading horizon Aesler Grup Internasional is expected to generate 1.93 times more return on investment than Wijaya Karya. However, Aesler Grup is 1.93 times more volatile than Wijaya Karya Bangunan. It trades about 0.65 of its potential returns per unit of risk. Wijaya Karya Bangunan is currently generating about -0.17 per unit of risk. If you would invest 63,500 in Aesler Grup Internasional on November 3, 2024 and sell it today you would earn a total of 118,000 from holding Aesler Grup Internasional or generate 185.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.3% |
| Values | Daily Returns |
Aesler Grup Internasional vs. Wijaya Karya Bangunan
Performance |
| Timeline |
| Aesler Grup Internasional |
| Wijaya Karya Bangunan |
Aesler Grup and Wijaya Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesler Grup and Wijaya Karya
The main advantage of trading using opposite Aesler Grup and Wijaya Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesler Grup position performs unexpectedly, Wijaya Karya 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 Wijaya Karya will offset losses from the drop in Wijaya Karya's long position.| Aesler Grup vs. Indo Acidatama Tbk | Aesler Grup vs. Dharma Polimetal Tbk | Aesler Grup vs. Humpuss Intermoda Transportasi | Aesler Grup vs. Hotel Sahid Jaya |
| Wijaya Karya vs. Wijaya Karya Beton | Wijaya Karya vs. Waskita Beton Precast | Wijaya Karya vs. Pembangunan Perumahan PT | Wijaya Karya vs. Puradelta Lestari PT |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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