Correlation Between Ciptadana Asset and PT Janu
Can any of the company-specific risk be diversified away by investing in both Ciptadana Asset and PT Janu 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 Ciptadana Asset and PT Janu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ciptadana Asset Management and PT Janu Putra, you can compare the effects of market volatilities on Ciptadana Asset and PT Janu 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 Ciptadana Asset with a short position of PT Janu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciptadana Asset and PT Janu.
Diversification Opportunities for Ciptadana Asset and PT Janu
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ciptadana and AYAM is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ciptadana Asset Management and PT Janu Putra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Janu Putra and Ciptadana Asset 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 Ciptadana Asset Management are associated (or correlated) with PT Janu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Janu Putra has no effect on the direction of Ciptadana Asset i.e., Ciptadana Asset and PT Janu go up and down completely randomly.
Pair Corralation between Ciptadana Asset and PT Janu
Assuming the 90 days trading horizon Ciptadana Asset is expected to generate 4.69 times less return on investment than PT Janu. But when comparing it to its historical volatility, Ciptadana Asset Management is 2.03 times less risky than PT Janu. It trades about 0.12 of its potential returns per unit of risk. PT Janu Putra is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 11,700 in PT Janu Putra on September 12, 2024 and sell it today you would earn a total of 3,300 from holding PT Janu Putra or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciptadana Asset Management vs. PT Janu Putra
Performance |
| Timeline |
| Ciptadana Asset Mana |
| PT Janu Putra |
Ciptadana Asset and PT Janu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciptadana Asset and PT Janu
The main advantage of trading using opposite Ciptadana Asset and PT Janu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciptadana Asset position performs unexpectedly, PT Janu 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 Janu will offset losses from the drop in PT Janu's long position.| Ciptadana Asset vs. Bank Central Asia | Ciptadana Asset vs. Bank Rakyat Indonesia | Ciptadana Asset vs. Bayan Resources Tbk | Ciptadana Asset vs. Bank Mandiri Persero |
| PT Janu vs. Enseval Putra Megatrading | PT Janu vs. Ciptadana Asset Management | PT Janu vs. Equity Development Investment | PT Janu vs. Gunawan Dianjaya Steel |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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