Correlation Between Armada Hflr and Ricky Putra

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

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

Diversification Opportunities for Armada Hflr and Ricky Putra

0.87

Correlation Coefficient

Armada Hflr  Ricky Putra

Very poor diversification

The 3 months correlation between Armada and Ricky is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Ricky Putra Globalindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ricky Putra Globalindo and Armada Hflr 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 Armada Hflr Pr are associated (or correlated) with Ricky Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ricky Putra Globalindo has no effect on the direction of Armada Hflr i.e., Armada Hflr and Ricky Putra go up and down completely randomly.

Pair Corralation between Armada Hflr and Ricky Putra

Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Ricky Putra. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.56 times less risky than Ricky Putra. The stock trades about -0.19 of its potential returns per unit of risk. The Ricky Putra Globalindo is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  7,500  in Ricky Putra Globalindo on December 2, 2024 and sell it today you would lose (1,100) from holding Ricky Putra Globalindo or give up 14.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	96.72%
Values	Daily Returns

Armada Hflr Pr  vs.  Ricky Putra Globalindo

Armada Hflr Pr

Risk-Adjusted Performance

Very Weak

Over the last 90 days Armada Hflr Pr has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Ricky Putra Globalindo

Risk-Adjusted Performance

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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Armada Hflr and Ricky Putra

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

The idea behind Armada Hflr Pr and Ricky Putra Globalindo 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.