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
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ciptadana and DEWI is 0.01. 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 is expected to generate 2.15 times less return on investment than PT Dewi. In addition to that, Ciptadana Asset is 1.38 times more volatile than PT Dewi Shri. It trades about 0.02 of its total potential returns per unit of risk. PT Dewi Shri is currently generating about 0.06 per unit of volatility. If you would invest 5,900 in PT Dewi Shri on September 5, 2024 and sell it today you would earn a total of 2,700 from holding PT Dewi Shri or generate 45.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.15% |
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. PT Dewi Shri | Ciptadana Asset vs. PT Data Sinergitama | Ciptadana Asset vs. PAM Mineral Tbk |
PT Dewi vs. Dharma Satya Nusantara | PT Dewi vs. Saratoga Investama Sedaya | PT Dewi vs. Surya Esa Perkasa | PT Dewi vs. Elang Mahkota Teknologi |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |