Correlation Between Chandra Asri and Repower Asia
Can any of the company-specific risk be diversified away by investing in both Chandra Asri and Repower Asia 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 Repower Asia 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 Repower Asia Indonesia, you can compare the effects of market volatilities on Chandra Asri and Repower Asia 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 Repower Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chandra Asri and Repower Asia.
Diversification Opportunities for Chandra Asri and Repower Asia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chandra and Repower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chandra Asri Petrochemical and Repower Asia Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repower Asia Indonesia 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 Repower Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repower Asia Indonesia has no effect on the direction of Chandra Asri i.e., Chandra Asri and Repower Asia go up and down completely randomly.
Pair Corralation between Chandra Asri and Repower Asia
If you would invest 205,873 in Chandra Asri Petrochemical on September 2, 2024 and sell it today you would earn a total of 479,127 from holding Chandra Asri Petrochemical or generate 232.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chandra Asri Petrochemical vs. Repower Asia Indonesia
Performance |
| Timeline |
| Chandra Asri Petroch |
| Repower Asia Indonesia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chandra Asri and Repower Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chandra Asri and Repower Asia
The main advantage of trading using opposite Chandra Asri and Repower Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chandra Asri position performs unexpectedly, Repower Asia 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 Repower Asia will offset losses from the drop in Repower Asia's long position.| Chandra Asri vs. Perusahaan Gas Negara | Chandra Asri vs. Telkom Indonesia Tbk | Chandra Asri vs. Mitra Pinasthika Mustika | Chandra Asri vs. Jakarta Int Hotels |
| Repower Asia vs. Nanotech Indonesia Global | Repower Asia vs. PT Homeco Victoria | Repower Asia vs. Era Media Sejahtera | Repower Asia vs. Intermedia Capital 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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