Correlation Between Ciptadana Asset and PT Dewi
Can any of the company-specific risk be diversified away by investing in both Ciptadana Asset and PT Dewi 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 PT Dewi 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 PT Dewi Shri, you can compare the effects of market volatilities on Ciptadana Asset and PT Dewi 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 PT Dewi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciptadana Asset and PT Dewi.
Diversification Opportunities for Ciptadana Asset and PT Dewi
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ciptadana and DEWI is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ciptadana Asset Management and PT Dewi Shri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Dewi Shri 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 PT Dewi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Dewi Shri has no effect on the direction of Ciptadana Asset i.e., Ciptadana Asset and PT Dewi go up and down completely randomly.
Pair Corralation between Ciptadana Asset and PT Dewi
Assuming the 90 days trading horizon Ciptadana Asset Management is expected to generate 2.47 times more return on investment than PT Dewi. However, Ciptadana Asset is 2.47 times more volatile than PT Dewi Shri. It trades about 0.12 of its potential returns per unit of risk. PT Dewi Shri is currently generating about 0.01 per unit of risk. If you would invest 5,527 in Ciptadana Asset Management on September 8, 2024 and sell it today you would earn a total of 373.00 from holding Ciptadana Asset Management or generate 6.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ciptadana Asset Management vs. PT Dewi Shri
Performance |
Timeline |
Ciptadana Asset Mana |
PT Dewi Shri |
Ciptadana Asset and PT Dewi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ciptadana Asset and PT Dewi
The main advantage of trading using opposite Ciptadana Asset and PT Dewi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciptadana Asset position performs unexpectedly, PT Dewi 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 PT Dewi will offset losses from the drop in PT Dewi's long position.Ciptadana Asset vs. Garuda Metalindo Tbk | Ciptadana Asset vs. Victoria Insurance Tbk | Ciptadana Asset vs. Alumindo Light Metal | Ciptadana Asset vs. Lion Metal Works |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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