Correlation Between Ciptadana Asset and Chandra Asri
Can any of the company-specific risk be diversified away by investing in both Ciptadana Asset and Chandra Asri 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 Chandra Asri 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 Chandra Asri Petrochemical, you can compare the effects of market volatilities on Ciptadana Asset and Chandra Asri 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 Chandra Asri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciptadana Asset and Chandra Asri.
Diversification Opportunities for Ciptadana Asset and Chandra Asri
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ciptadana and Chandra is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ciptadana Asset Management and Chandra Asri Petrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chandra Asri Petroch 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 Chandra Asri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chandra Asri Petroch has no effect on the direction of Ciptadana Asset i.e., Ciptadana Asset and Chandra Asri go up and down completely randomly.
Pair Corralation between Ciptadana Asset and Chandra Asri
Assuming the 90 days trading horizon Ciptadana Asset Management is expected to generate 1.75 times more return on investment than Chandra Asri. However, Ciptadana Asset is 1.75 times more volatile than Chandra Asri Petrochemical. It trades about 0.02 of its potential returns per unit of risk. Chandra Asri Petrochemical is currently generating about -0.07 per unit of risk. If you would invest 6,049 in Ciptadana Asset Management on August 24, 2024 and sell it today you would lose (149.00) from holding Ciptadana Asset Management or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciptadana Asset Management vs. Chandra Asri Petrochemical
Performance |
| Timeline |
| Ciptadana Asset Mana |
| Chandra Asri Petroch |
Ciptadana Asset and Chandra Asri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciptadana Asset and Chandra Asri
The main advantage of trading using opposite Ciptadana Asset and Chandra Asri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciptadana Asset position performs unexpectedly, Chandra Asri 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 Chandra Asri will offset losses from the drop in Chandra Asri'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 |
| Chandra Asri vs. Barito Pacific Tbk | Chandra Asri vs. Pabrik Kertas Tjiwi | Chandra Asri vs. Charoen Pokphand Indonesia | Chandra Asri vs. Indah Kiat Pulp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |