Correlation Between Yelooo Integra and Alumindo Light
Can any of the company-specific risk be diversified away by investing in both Yelooo Integra and Alumindo Light 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 Yelooo Integra and Alumindo Light into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yelooo Integra Datanet and Alumindo Light Metal, you can compare the effects of market volatilities on Yelooo Integra and Alumindo Light 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 Yelooo Integra with a short position of Alumindo Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yelooo Integra and Alumindo Light.
Diversification Opportunities for Yelooo Integra and Alumindo Light
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yelooo and Alumindo is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Yelooo Integra Datanet and Alumindo Light Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumindo Light Metal and Yelooo Integra 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 Yelooo Integra Datanet are associated (or correlated) with Alumindo Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumindo Light Metal has no effect on the direction of Yelooo Integra i.e., Yelooo Integra and Alumindo Light go up and down completely randomly.
Pair Corralation between Yelooo Integra and Alumindo Light
Assuming the 90 days trading horizon Yelooo Integra Datanet is expected to under-perform the Alumindo Light. In addition to that, Yelooo Integra is 1.19 times more volatile than Alumindo Light Metal. It trades about -0.09 of its total potential returns per unit of risk. Alumindo Light Metal is currently generating about -0.09 per unit of volatility. If you would invest 20,400 in Alumindo Light Metal on September 3, 2024 and sell it today you would lose (13,000) from holding Alumindo Light Metal or give up 63.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yelooo Integra Datanet vs. Alumindo Light Metal
Performance |
| Timeline |
| Yelooo Integra Datanet |
| Alumindo Light Metal |
Yelooo Integra and Alumindo Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yelooo Integra and Alumindo Light
The main advantage of trading using opposite Yelooo Integra and Alumindo Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yelooo Integra position performs unexpectedly, Alumindo Light 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 Alumindo Light will offset losses from the drop in Alumindo Light's long position.| Yelooo Integra vs. Mitra Pinasthika Mustika | Yelooo Integra vs. Jakarta Int Hotels | Yelooo Integra vs. Asuransi Harta Aman | Yelooo Integra vs. Indosterling Technomedia Tbk |
| Alumindo Light vs. Timah Persero Tbk | Alumindo Light vs. Semen Indonesia Persero | Alumindo Light vs. Mitra Pinasthika Mustika | Alumindo Light vs. Jakarta Int Hotels |
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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