Correlation Between ANT and Citra Borneo

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

By analyzing existing cross correlation between ANT and Citra Borneo Utama, you can compare the effects of market volatilities on ANT and Citra Borneo 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 ANT with a short position of Citra Borneo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Citra Borneo.

Diversification Opportunities for ANT and Citra Borneo

0.26

Correlation Coefficient

ANT  Citra Borneo

Modest diversification

The 3 months correlation between ANT and Citra is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Citra Borneo Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Borneo Utama and ANT 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 ANT are associated (or correlated) with Citra Borneo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Borneo Utama has no effect on the direction of ANT i.e., ANT and Citra Borneo go up and down completely randomly.

Pair Corralation between ANT and Citra Borneo

Assuming the 90 days trading horizon ANT is expected to generate 4.83 times more return on investment than Citra Borneo. However, ANT is 4.83 times more volatile than Citra Borneo Utama. It trades about 0.08 of its potential returns per unit of risk. Citra Borneo Utama is currently generating about -0.14 per unit of risk. If you would invest  145.00  in ANT on October 10, 2024 and sell it today you would earn a total of  2.00  from holding ANT or generate 1.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	86.36%
Values	Daily Returns

ANT  vs.  Citra Borneo Utama

ANT

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ANT exhibited solid returns over the last few months and may actually be approaching a breakup point.

Citra Borneo Utama

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Citra Borneo Utama 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 February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with ANT and Citra Borneo

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

The idea behind ANT and Citra Borneo Utama 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.