Correlation Between Asahimas Flat and Akasha Wira
Can any of the company-specific risk be diversified away by investing in both Asahimas Flat and Akasha Wira 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 Akasha Wira 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 Akasha Wira International, you can compare the effects of market volatilities on Asahimas Flat and Akasha Wira 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 Akasha Wira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asahimas Flat and Akasha Wira.
Diversification Opportunities for Asahimas Flat and Akasha Wira
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asahimas and Akasha is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Asahimas Flat Glass and Akasha Wira International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akasha Wira International 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 Akasha Wira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akasha Wira International has no effect on the direction of Asahimas Flat i.e., Asahimas Flat and Akasha Wira go up and down completely randomly.
Pair Corralation between Asahimas Flat and Akasha Wira
Assuming the 90 days trading horizon Asahimas Flat Glass is expected to under-perform the Akasha Wira. But the stock apears to be less risky and, when comparing its historical volatility, Asahimas Flat Glass is 2.56 times less risky than Akasha Wira. The stock trades about -0.04 of its potential returns per unit of risk. The Akasha Wira International is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 997,500 in Akasha Wira International on September 3, 2024 and sell it today you would lose (22,500) from holding Akasha Wira International or give up 2.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Asahimas Flat Glass vs. Akasha Wira International
Performance |
Timeline |
Asahimas Flat Glass |
Akasha Wira International |
Asahimas Flat and Akasha Wira Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asahimas Flat and Akasha Wira
The main advantage of trading using opposite Asahimas Flat and Akasha Wira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asahimas Flat position performs unexpectedly, Akasha Wira 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 Akasha Wira will offset losses from the drop in Akasha Wira's long position.Asahimas Flat vs. Arwana Citramulia Tbk | Asahimas Flat vs. Asiaplast Industries Tbk | Asahimas Flat vs. Argha Karya Prima | Asahimas Flat vs. Astra Graphia Tbk |
Akasha Wira vs. FKS Food Sejahtera | Akasha Wira vs. Wilmar Cahaya Indonesia | Akasha Wira vs. Polychem Indonesia Tbk | Akasha Wira vs. Astra Graphia Tbk |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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