Correlation Between Pt Pakuan and Pt Pradiksi
Can any of the company-specific risk be diversified away by investing in both Pt Pakuan and Pt Pradiksi 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 Pt Pakuan and Pt Pradiksi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pt Pakuan Tbk and Pt Pradiksi Gunatama, you can compare the effects of market volatilities on Pt Pakuan and Pt Pradiksi 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 Pt Pakuan with a short position of Pt Pradiksi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pakuan and Pt Pradiksi.
Diversification Opportunities for Pt Pakuan and Pt Pradiksi
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UANG and PGUN is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pakuan Tbk and Pt Pradiksi Gunatama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pradiksi Gunatama and Pt Pakuan 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 Pt Pakuan Tbk are associated (or correlated) with Pt Pradiksi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pradiksi Gunatama has no effect on the direction of Pt Pakuan i.e., Pt Pakuan and Pt Pradiksi go up and down completely randomly.
Pair Corralation between Pt Pakuan and Pt Pradiksi
If you would invest 42,400 in Pt Pradiksi Gunatama on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Pt Pradiksi Gunatama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pt Pakuan Tbk vs. Pt Pradiksi Gunatama
Performance |
| Timeline |
| Pt Pakuan Tbk |
| Pt Pradiksi Gunatama |
Pt Pakuan and Pt Pradiksi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pt Pakuan and Pt Pradiksi
The main advantage of trading using opposite Pt Pakuan and Pt Pradiksi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pakuan position performs unexpectedly, Pt Pradiksi 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 Pradiksi will offset losses from the drop in Pt Pradiksi's long position.| Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
| Pt Pradiksi vs. Dharma Satya Nusantara | Pt Pradiksi vs. Saratoga Investama Sedaya | Pt Pradiksi vs. Surya Esa Perkasa | Pt Pradiksi vs. Elang Mahkota Teknologi |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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