Correlation Between Chandra Asri and Superkrane Mitra
Can any of the company-specific risk be diversified away by investing in both Chandra Asri and Superkrane Mitra 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 Superkrane Mitra 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 Superkrane Mitra Utama, you can compare the effects of market volatilities on Chandra Asri and Superkrane Mitra 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 Superkrane Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chandra Asri and Superkrane Mitra.
Diversification Opportunities for Chandra Asri and Superkrane Mitra
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chandra and Superkrane is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Chandra Asri Petrochemical and Superkrane Mitra Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superkrane Mitra Utama 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 Superkrane Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superkrane Mitra Utama has no effect on the direction of Chandra Asri i.e., Chandra Asri and Superkrane Mitra go up and down completely randomly.
Pair Corralation between Chandra Asri and Superkrane Mitra
Assuming the 90 days trading horizon Chandra Asri Petrochemical is expected to under-perform the Superkrane Mitra. But the stock apears to be less risky and, when comparing its historical volatility, Chandra Asri Petrochemical is 1.02 times less risky than Superkrane Mitra. The stock trades about -0.13 of its potential returns per unit of risk. The Superkrane Mitra Utama is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 29,932 in Superkrane Mitra Utama on September 2, 2024 and sell it today you would earn a total of 6,668 from holding Superkrane Mitra Utama or generate 22.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chandra Asri Petrochemical vs. Superkrane Mitra Utama
Performance |
| Timeline |
| Chandra Asri Petroch |
| Superkrane Mitra Utama |
Chandra Asri and Superkrane Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chandra Asri and Superkrane Mitra
The main advantage of trading using opposite Chandra Asri and Superkrane Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chandra Asri position performs unexpectedly, Superkrane Mitra 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 Superkrane Mitra will offset losses from the drop in Superkrane Mitra'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 |
| Superkrane Mitra vs. Garudafood Putra Putri | Superkrane Mitra vs. PT Surya Pertiwi | Superkrane Mitra vs. MD Pictures Tbk | Superkrane Mitra vs. PT Mulia Industrindo |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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