Correlation Between Indo Acidatama and Ciptadana Asset
Can any of the company-specific risk be diversified away by investing in both Indo Acidatama and Ciptadana Asset 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 Indo Acidatama and Ciptadana Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Acidatama Tbk and Ciptadana Asset Management, you can compare the effects of market volatilities on Indo Acidatama and Ciptadana Asset 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 Indo Acidatama with a short position of Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Acidatama and Ciptadana Asset.
Diversification Opportunities for Indo Acidatama and Ciptadana Asset
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Indo and Ciptadana is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Indo Acidatama Tbk and Ciptadana Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciptadana Asset Mana and Indo Acidatama 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 Indo Acidatama Tbk are associated (or correlated) with Ciptadana Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciptadana Asset Mana has no effect on the direction of Indo Acidatama i.e., Indo Acidatama and Ciptadana Asset go up and down completely randomly.
Pair Corralation between Indo Acidatama and Ciptadana Asset
Assuming the 90 days trading horizon Indo Acidatama Tbk is expected to under-perform the Ciptadana Asset. But the stock apears to be less risky and, when comparing its historical volatility, Indo Acidatama Tbk is 2.24 times less risky than Ciptadana Asset. The stock trades about -0.03 of its potential returns per unit of risk. The Ciptadana Asset Management is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 5,922 in Ciptadana Asset Management on August 30, 2024 and sell it today you would lose (122.00) from holding Ciptadana Asset Management or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Acidatama Tbk vs. Ciptadana Asset Management
Performance |
| Timeline |
| Indo Acidatama Tbk |
| Ciptadana Asset Mana |
Indo Acidatama and Ciptadana Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Acidatama and Ciptadana Asset
The main advantage of trading using opposite Indo Acidatama and Ciptadana Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Acidatama position performs unexpectedly, Ciptadana Asset 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 Ciptadana Asset will offset losses from the drop in Ciptadana Asset's long position.| Indo Acidatama vs. PT Sreeya Sewu | Indo Acidatama vs. Trias Sentosa Tbk | Indo Acidatama vs. Slj Global Tbk | Indo Acidatama vs. Suparma Tbk |
| Ciptadana Asset vs. Bank Central Asia | Ciptadana Asset vs. Bank Rakyat Indonesia | Ciptadana Asset vs. Bayan Resources Tbk | Ciptadana Asset vs. Bank Mandiri Persero |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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