Correlation Between Sunson Textile and Ricky Putra
Can any of the company-specific risk be diversified away by investing in both Sunson Textile and Ricky Putra 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 Sunson Textile and Ricky Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunson Textile Manufacturer and Ricky Putra Globalindo, you can compare the effects of market volatilities on Sunson Textile and Ricky Putra 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 Sunson Textile with a short position of Ricky Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunson Textile and Ricky Putra.
Diversification Opportunities for Sunson Textile and Ricky Putra
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunson and Ricky is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sunson Textile Manufacturer and Ricky Putra Globalindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ricky Putra Globalindo and Sunson Textile 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 Sunson Textile Manufacturer are associated (or correlated) with Ricky Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ricky Putra Globalindo has no effect on the direction of Sunson Textile i.e., Sunson Textile and Ricky Putra go up and down completely randomly.
Pair Corralation between Sunson Textile and Ricky Putra
Assuming the 90 days trading horizon Sunson Textile Manufacturer is expected to under-perform the Ricky Putra. In addition to that, Sunson Textile is 3.67 times more volatile than Ricky Putra Globalindo. It trades about -0.07 of its total potential returns per unit of risk. Ricky Putra Globalindo is currently generating about 0.05 per unit of volatility. If you would invest 6,700 in Ricky Putra Globalindo on November 5, 2024 and sell it today you would earn a total of 100.00 from holding Ricky Putra Globalindo or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunson Textile Manufacturer vs. Ricky Putra Globalindo
Performance |
| Timeline |
| Sunson Textile Manuf |
| Ricky Putra Globalindo |
Sunson Textile and Ricky Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunson Textile and Ricky Putra
The main advantage of trading using opposite Sunson Textile and Ricky Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunson Textile position performs unexpectedly, Ricky Putra 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 Ricky Putra will offset losses from the drop in Ricky Putra's long position.| Sunson Textile vs. Catur Sentosa Adiprana | Sunson Textile vs. Fast Food Indonesia | Sunson Textile vs. Hero Supermarket Tbk | Sunson Textile vs. Graha Layar Prima |
| Ricky Putra vs. Catur Sentosa Adiprana | Ricky Putra vs. Fast Food Indonesia | Ricky Putra vs. Hero Supermarket Tbk | Ricky Putra vs. Graha Layar Prima |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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