Correlation Between Ciptadana Asset and Arkadia Digital
Can any of the company-specific risk be diversified away by investing in both Ciptadana Asset and Arkadia Digital 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 Arkadia Digital 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 Arkadia Digital Media, you can compare the effects of market volatilities on Ciptadana Asset and Arkadia Digital 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 Arkadia Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciptadana Asset and Arkadia Digital.
Diversification Opportunities for Ciptadana Asset and Arkadia Digital
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ciptadana and Arkadia is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ciptadana Asset Management and Arkadia Digital Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arkadia Digital Media 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 Arkadia Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arkadia Digital Media has no effect on the direction of Ciptadana Asset i.e., Ciptadana Asset and Arkadia Digital go up and down completely randomly.
Pair Corralation between Ciptadana Asset and Arkadia Digital
Assuming the 90 days trading horizon Ciptadana Asset Management is expected to generate 1.09 times more return on investment than Arkadia Digital. However, Ciptadana Asset is 1.09 times more volatile than Arkadia Digital Media. It trades about 0.01 of its potential returns per unit of risk. Arkadia Digital Media is currently generating about -0.06 per unit of risk. If you would invest 7,123 in Ciptadana Asset Management on August 27, 2024 and sell it today you would lose (1,323) from holding Ciptadana Asset Management or give up 18.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Ciptadana Asset Management vs. Arkadia Digital Media
Performance |
| Timeline |
| Ciptadana Asset Mana |
| Arkadia Digital Media |
Ciptadana Asset and Arkadia Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciptadana Asset and Arkadia Digital
The main advantage of trading using opposite Ciptadana Asset and Arkadia Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciptadana Asset position performs unexpectedly, Arkadia Digital 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 Arkadia Digital will offset losses from the drop in Arkadia Digital'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 |
| Arkadia Digital vs. Electronic City Indonesia | Arkadia Digital vs. MD Pictures Tbk | Arkadia Digital vs. Bintang Oto Global | Arkadia Digital vs. Graha Layar Prima |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |