Correlation Between PT Rohartindo and PT Boston
Can any of the company-specific risk be diversified away by investing in both PT Rohartindo and PT Boston 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 Rohartindo and PT Boston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Rohartindo Nusantara and PT Boston Furniture, you can compare the effects of market volatilities on PT Rohartindo and PT Boston 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 Rohartindo with a short position of PT Boston. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Rohartindo and PT Boston.
Diversification Opportunities for PT Rohartindo and PT Boston
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TOOL and SOFA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding PT Rohartindo Nusantara and PT Boston Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Boston Furniture and PT Rohartindo 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 Rohartindo Nusantara are associated (or correlated) with PT Boston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Boston Furniture has no effect on the direction of PT Rohartindo i.e., PT Rohartindo and PT Boston go up and down completely randomly.
Pair Corralation between PT Rohartindo and PT Boston
Assuming the 90 days trading horizon PT Rohartindo Nusantara is expected to under-perform the PT Boston. But the stock apears to be less risky and, when comparing its historical volatility, PT Rohartindo Nusantara is 4.16 times less risky than PT Boston. The stock trades about -0.24 of its potential returns per unit of risk. The PT Boston Furniture is currently generating about 0.71 of returns per unit of risk over similar time horizon. If you would invest 1,900 in PT Boston Furniture on September 1, 2024 and sell it today you would earn a total of 1,700 from holding PT Boston Furniture or generate 89.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Rohartindo Nusantara vs. PT Boston Furniture
Performance |
| Timeline |
| PT Rohartindo Nusantara |
| PT Boston Furniture |
PT Rohartindo and PT Boston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Rohartindo and PT Boston
The main advantage of trading using opposite PT Rohartindo and PT Boston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Rohartindo position performs unexpectedly, PT Boston 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 PT Boston will offset losses from the drop in PT Boston's long position.| PT Rohartindo vs. PT Hetzer Medical | PT Rohartindo vs. Bangun Karya Perkasa | PT Rohartindo vs. PT Sari Kreasi | PT Rohartindo vs. PT Dewi Shri |
| PT Boston vs. Pt Pakuan Tbk | PT Boston vs. Integra Indocabinet Tbk | PT Boston vs. Multistrada Arah Sarana | PT Boston vs. PT MNC Energy |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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