Correlation Between PT Charlie and Personel Alih
Can any of the company-specific risk be diversified away by investing in both PT Charlie and Personel Alih 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 PT Charlie and Personel Alih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Charlie Hospital and Personel Alih Daya, you can compare the effects of market volatilities on PT Charlie and Personel Alih 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 PT Charlie with a short position of Personel Alih. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Charlie and Personel Alih.
Diversification Opportunities for PT Charlie and Personel Alih
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between RSCH and Personel is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding PT Charlie Hospital and Personel Alih Daya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personel Alih Daya and PT Charlie 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 PT Charlie Hospital are associated (or correlated) with Personel Alih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personel Alih Daya has no effect on the direction of PT Charlie i.e., PT Charlie and Personel Alih go up and down completely randomly.
Pair Corralation between PT Charlie and Personel Alih
Assuming the 90 days trading horizon PT Charlie Hospital is expected to under-perform the Personel Alih. But the stock apears to be less risky and, when comparing its historical volatility, PT Charlie Hospital is 2.19 times less risky than Personel Alih. The stock trades about -0.23 of its potential returns per unit of risk. The Personel Alih Daya is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,400 in Personel Alih Daya on September 5, 2024 and sell it today you would lose (100.00) from holding Personel Alih Daya or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Charlie Hospital vs. Personel Alih Daya
Performance |
| Timeline |
| PT Charlie Hospital |
| Personel Alih Daya |
PT Charlie and Personel Alih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Charlie and Personel Alih
The main advantage of trading using opposite PT Charlie and Personel Alih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Charlie position performs unexpectedly, Personel Alih 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 Personel Alih will offset losses from the drop in Personel Alih's long position.| PT Charlie vs. Chandra Asri Petrochemical | PT Charlie vs. Bank Negara Indonesia | PT Charlie vs. Sumber Alfaria Trijaya | PT Charlie vs. Mitra Pinasthika Mustika |
| Personel Alih vs. PT Surya Pertiwi | Personel Alih vs. Satria Mega Kencana | Personel Alih vs. Multifiling Mitra Indonesia | Personel Alih vs. Royal Prima 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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