Correlation Between Chandra Asri and Map Boga
Can any of the company-specific risk be diversified away by investing in both Chandra Asri and Map Boga 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 Boga 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 Boga Adiperkasa, you can compare the effects of market volatilities on Chandra Asri and Map Boga 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 Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chandra Asri and Map Boga.
Diversification Opportunities for Chandra Asri and Map Boga
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chandra and Map is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Chandra Asri Petrochemical and Map Boga Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Map Boga 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 Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Map Boga Adiperkasa has no effect on the direction of Chandra Asri i.e., Chandra Asri and Map Boga go up and down completely randomly.
Pair Corralation between Chandra Asri and Map Boga
Assuming the 90 days trading horizon Chandra Asri Petrochemical is expected to generate 1.47 times more return on investment than Map Boga. However, Chandra Asri is 1.47 times more volatile than Map Boga Adiperkasa. It trades about 0.08 of its potential returns per unit of risk. Map Boga Adiperkasa is currently generating about -0.01 per unit of risk. If you would invest 233,284 in Chandra Asri Petrochemical on August 29, 2024 and sell it today you would earn a total of 489,216 from holding Chandra Asri Petrochemical or generate 209.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chandra Asri Petrochemical vs. Map Boga Adiperkasa
Performance |
| Timeline |
| Chandra Asri Petroch |
| Map Boga Adiperkasa |
Chandra Asri and Map Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chandra Asri and Map Boga
The main advantage of trading using opposite Chandra Asri and Map Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chandra Asri position performs unexpectedly, Map Boga 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 Boga will offset losses from the drop in Map Boga'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 Boga vs. MAP Aktif Adiperkasa | Map Boga vs. Fast Food Indonesia | Map Boga vs. PT Sarimelati Kencana | Map Boga vs. Prodia Widyahusada Tbk |
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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