Correlation Between PT Soho and Phapros Tbk
Can any of the company-specific risk be diversified away by investing in both PT Soho and Phapros Tbk 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 Soho and Phapros Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Soho Global and Phapros Tbk PT, you can compare the effects of market volatilities on PT Soho and Phapros Tbk 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 Soho with a short position of Phapros Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Soho and Phapros Tbk.
Diversification Opportunities for PT Soho and Phapros Tbk
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SOHO and Phapros is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding PT Soho Global and Phapros Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phapros Tbk PT and PT Soho 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 Soho Global are associated (or correlated) with Phapros Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phapros Tbk PT has no effect on the direction of PT Soho i.e., PT Soho and Phapros Tbk go up and down completely randomly.
Pair Corralation between PT Soho and Phapros Tbk
Assuming the 90 days trading horizon PT Soho Global is expected to generate 0.22 times more return on investment than Phapros Tbk. However, PT Soho Global is 4.56 times less risky than Phapros Tbk. It trades about 0.0 of its potential returns per unit of risk. Phapros Tbk PT is currently generating about -0.37 per unit of risk. If you would invest 69,000 in PT Soho Global on August 30, 2024 and sell it today you would earn a total of 0.00 from holding PT Soho Global or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Soho Global vs. Phapros Tbk PT
Performance |
| Timeline |
| PT Soho Global |
| Phapros Tbk PT |
PT Soho and Phapros Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Soho and Phapros Tbk
The main advantage of trading using opposite PT Soho and Phapros Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Soho position performs unexpectedly, Phapros Tbk 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 Phapros Tbk will offset losses from the drop in Phapros Tbk's long position.| PT Soho vs. Phapros Tbk PT | PT Soho vs. Prodia Widyahusada Tbk | PT Soho vs. Sarana Meditama Metropolitan | PT Soho vs. Metro Healthcare Indonesia |
| Phapros Tbk vs. Indofarma Tbk | Phapros Tbk vs. Pyridam Farma Tbk | Phapros Tbk vs. Itama Ranoraya | Phapros Tbk vs. Darya Varia Laboratoria 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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