Correlation Between Chandra Asri and MAP Aktif
Can any of the company-specific risk be diversified away by investing in both Chandra Asri and MAP Aktif 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 MAP Aktif 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 MAP Aktif Adiperkasa, you can compare the effects of market volatilities on Chandra Asri and MAP Aktif 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 MAP Aktif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chandra Asri and MAP Aktif.
Diversification Opportunities for Chandra Asri and MAP Aktif
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chandra and MAP is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Chandra Asri Petrochemical and MAP Aktif Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAP Aktif Adiperkasa 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 MAP Aktif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAP Aktif Adiperkasa has no effect on the direction of Chandra Asri i.e., Chandra Asri and MAP Aktif go up and down completely randomly.
Pair Corralation between Chandra Asri and MAP Aktif
Assuming the 90 days trading horizon Chandra Asri is expected to generate 7.62 times less return on investment than MAP Aktif. But when comparing it to its historical volatility, Chandra Asri Petrochemical is 12.6 times less risky than MAP Aktif. It trades about 0.08 of its potential returns per unit of risk. MAP Aktif Adiperkasa is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 37,844 in MAP Aktif Adiperkasa on August 25, 2024 and sell it today you would earn a total of 63,156 from holding MAP Aktif Adiperkasa or generate 166.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chandra Asri Petrochemical vs. MAP Aktif Adiperkasa
Performance |
| Timeline |
| Chandra Asri Petroch |
| MAP Aktif Adiperkasa |
Chandra Asri and MAP Aktif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chandra Asri and MAP Aktif
The main advantage of trading using opposite Chandra Asri and MAP Aktif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chandra Asri position performs unexpectedly, MAP Aktif 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 MAP Aktif will offset losses from the drop in MAP Aktif'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 |
| MAP Aktif vs. Mitra Adiperkasa Tbk | MAP Aktif vs. Map Boga Adiperkasa | MAP Aktif vs. Mitra Keluarga Karyasehat | MAP Aktif vs. Medikaloka Hermina PT |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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