Correlation Between Ricky Putra and Voksel Electric

Can any of the company-specific risk be diversified away by investing in both Ricky Putra and Voksel Electric 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 Ricky Putra and Voksel Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ricky Putra Globalindo and Voksel Electric Tbk, you can compare the effects of market volatilities on Ricky Putra and Voksel Electric 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 Ricky Putra with a short position of Voksel Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ricky Putra and Voksel Electric.

Diversification Opportunities for Ricky Putra and Voksel Electric

-0.12

Correlation Coefficient

Ricky Putra  Voksel Electric

Good diversification

The 3 months correlation between Ricky and Voksel is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ricky Putra Globalindo and Voksel Electric Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voksel Electric Tbk and Ricky Putra 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 Ricky Putra Globalindo are associated (or correlated) with Voksel Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voksel Electric Tbk has no effect on the direction of Ricky Putra i.e., Ricky Putra and Voksel Electric go up and down completely randomly.

Pair Corralation between Ricky Putra and Voksel Electric

Assuming the 90 days trading horizon Ricky Putra is expected to generate 25.17 times less return on investment than Voksel Electric. In addition to that, Ricky Putra is 1.1 times more volatile than Voksel Electric Tbk. It trades about 0.0 of its total potential returns per unit of risk. Voksel Electric Tbk is currently generating about 0.04 per unit of volatility. If you would invest  19,600  in Voksel Electric Tbk on September 12, 2024 and sell it today you would earn a total of  4,800  from holding Voksel Electric Tbk or generate 24.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ricky Putra Globalindo  vs.  Voksel Electric Tbk

Ricky Putra Globalindo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ricky Putra Globalindo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Voksel Electric Tbk

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Voksel Electric Tbk are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Voksel Electric may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Ricky Putra and Voksel Electric

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

The idea behind Ricky Putra Globalindo and Voksel Electric Tbk 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..