Correlation Between Catur Sentosa and Putra Mandiri
Can any of the company-specific risk be diversified away by investing in both Catur Sentosa and Putra Mandiri 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 Catur Sentosa and Putra Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catur Sentosa Adiprana and Putra Mandiri Jembar, you can compare the effects of market volatilities on Catur Sentosa and Putra Mandiri 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 Catur Sentosa with a short position of Putra Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catur Sentosa and Putra Mandiri.
Diversification Opportunities for Catur Sentosa and Putra Mandiri
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catur and Putra is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Catur Sentosa Adiprana and Putra Mandiri Jembar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putra Mandiri Jembar and Catur Sentosa 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 Catur Sentosa Adiprana are associated (or correlated) with Putra Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putra Mandiri Jembar has no effect on the direction of Catur Sentosa i.e., Catur Sentosa and Putra Mandiri go up and down completely randomly.
Pair Corralation between Catur Sentosa and Putra Mandiri
Assuming the 90 days trading horizon Catur Sentosa Adiprana is expected to under-perform the Putra Mandiri. But the stock apears to be less risky and, when comparing its historical volatility, Catur Sentosa Adiprana is 1.02 times less risky than Putra Mandiri. The stock trades about -0.06 of its potential returns per unit of risk. The Putra Mandiri Jembar is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 12,200 in Putra Mandiri Jembar on December 3, 2024 and sell it today you would lose (700.00) from holding Putra Mandiri Jembar or give up 5.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Catur Sentosa Adiprana vs. Putra Mandiri Jembar
Performance |
Timeline |
Catur Sentosa Adiprana |
Putra Mandiri Jembar |
Catur Sentosa and Putra Mandiri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catur Sentosa and Putra Mandiri
The main advantage of trading using opposite Catur Sentosa and Putra Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catur Sentosa position performs unexpectedly, Putra Mandiri 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 Putra Mandiri will offset losses from the drop in Putra Mandiri's long position.Catur Sentosa vs. Nusa Konstruksi Enjiniring | Catur Sentosa vs. Bukit Darmo Property | Catur Sentosa vs. Bayu Buana Tbk | Catur Sentosa vs. Astra Graphia Tbk |
Putra Mandiri vs. Uni Charm Indonesia | Putra Mandiri vs. MNC Studios International | Putra Mandiri vs. Kencana Energi Lestari | Putra Mandiri vs. Bintang Oto Global |
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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