Correlation Between Chandra Asri and PT Cilacap
Can any of the company-specific risk be diversified away by investing in both Chandra Asri and PT Cilacap 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 Chandra Asri and PT Cilacap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chandra Asri Petrochemical and PT Cilacap Samudera, you can compare the effects of market volatilities on Chandra Asri and PT Cilacap 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 Chandra Asri with a short position of PT Cilacap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chandra Asri and PT Cilacap.
Diversification Opportunities for Chandra Asri and PT Cilacap
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chandra and ASHA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Chandra Asri Petrochemical and PT Cilacap Samudera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Cilacap Samudera and Chandra Asri 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 Chandra Asri Petrochemical are associated (or correlated) with PT Cilacap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Cilacap Samudera has no effect on the direction of Chandra Asri i.e., Chandra Asri and PT Cilacap go up and down completely randomly.
Pair Corralation between Chandra Asri and PT Cilacap
Assuming the 90 days trading horizon Chandra Asri Petrochemical is expected to under-perform the PT Cilacap. But the stock apears to be less risky and, when comparing its historical volatility, Chandra Asri Petrochemical is 1.2 times less risky than PT Cilacap. The stock trades about -0.18 of its potential returns per unit of risk. The PT Cilacap Samudera is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,400 in PT Cilacap Samudera on August 28, 2024 and sell it today you would lose (200.00) from holding PT Cilacap Samudera or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chandra Asri Petrochemical vs. PT Cilacap Samudera
Performance |
| Timeline |
| Chandra Asri Petroch |
| PT Cilacap Samudera |
Chandra Asri and PT Cilacap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chandra Asri and PT Cilacap
The main advantage of trading using opposite Chandra Asri and PT Cilacap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chandra Asri position performs unexpectedly, PT Cilacap 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 Cilacap will offset losses from the drop in PT Cilacap's long position.| Chandra Asri vs. Kedaung Indah Can | Chandra Asri vs. Langgeng Makmur Industri | Chandra Asri vs. Kabelindo Murni Tbk | Chandra Asri vs. Mustika Ratu Tbk |
| PT Cilacap vs. Bank Central Asia | PT Cilacap vs. Bank Rakyat Indonesia | PT Cilacap vs. Bayan Resources Tbk | PT Cilacap 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |