Correlation Between Asahimas Flat and Anugerah Kagum

Can any of the company-specific risk be diversified away by investing in both Asahimas Flat and Anugerah Kagum 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 Asahimas Flat and Anugerah Kagum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asahimas Flat Glass and Anugerah Kagum Karya, you can compare the effects of market volatilities on Asahimas Flat and Anugerah Kagum 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 Asahimas Flat with a short position of Anugerah Kagum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asahimas Flat and Anugerah Kagum.

Diversification Opportunities for Asahimas Flat and Anugerah Kagum

0.15

Correlation Coefficient

Asahimas Flat  Anugerah Kagum

Average diversification

The 3 months correlation between Asahimas and Anugerah is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Asahimas Flat Glass and Anugerah Kagum Karya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anugerah Kagum Karya and Asahimas Flat 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 Asahimas Flat Glass are associated (or correlated) with Anugerah Kagum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anugerah Kagum Karya has no effect on the direction of Asahimas Flat i.e., Asahimas Flat and Anugerah Kagum go up and down completely randomly.

Pair Corralation between Asahimas Flat and Anugerah Kagum

Assuming the 90 days trading horizon Asahimas Flat Glass is expected to under-perform the Anugerah Kagum. But the stock apears to be less risky and, when comparing its historical volatility, Asahimas Flat Glass is 5.25 times less risky than Anugerah Kagum. The stock trades about -0.05 of its potential returns per unit of risk. The Anugerah Kagum Karya is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  1,500  in Anugerah Kagum Karya on September 4, 2024 and sell it today you would lose (100.00) from holding Anugerah Kagum Karya or give up 6.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Asahimas Flat Glass  vs.  Anugerah Kagum Karya

Asahimas Flat Glass

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asahimas Flat Glass has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Asahimas Flat is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Anugerah Kagum Karya

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anugerah Kagum Karya has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Anugerah Kagum is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Asahimas Flat and Anugerah Kagum

The main advantage of trading using opposite Asahimas Flat and Anugerah Kagum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asahimas Flat position performs unexpectedly, Anugerah Kagum 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 Anugerah Kagum will offset losses from the drop in Anugerah Kagum's long position.

The idea behind Asahimas Flat Glass and Anugerah Kagum Karya pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.