Correlation Between Pelayaran Nelly and Nusa Raya

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

By analyzing existing cross correlation between Pelayaran Nelly Dwi and Nusa Raya Cipta, you can compare the effects of market volatilities on Pelayaran Nelly and Nusa Raya 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 Pelayaran Nelly with a short position of Nusa Raya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelayaran Nelly and Nusa Raya.

Diversification Opportunities for Pelayaran Nelly and Nusa Raya

0.49

Correlation Coefficient

Pelayaran Nelly  Nusa Raya

Very weak diversification

The 3 months correlation between Pelayaran and Nusa is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pelayaran Nelly Dwi and Nusa Raya Cipta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusa Raya Cipta and Pelayaran Nelly 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 Pelayaran Nelly Dwi are associated (or correlated) with Nusa Raya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusa Raya Cipta has no effect on the direction of Pelayaran Nelly i.e., Pelayaran Nelly and Nusa Raya go up and down completely randomly.

Pair Corralation between Pelayaran Nelly and Nusa Raya

Assuming the 90 days trading horizon Pelayaran Nelly Dwi is expected to under-perform the Nusa Raya. In addition to that, Pelayaran Nelly is 1.17 times more volatile than Nusa Raya Cipta. It trades about -0.34 of its total potential returns per unit of risk. Nusa Raya Cipta is currently generating about -0.22 per unit of volatility. If you would invest  35,800  in Nusa Raya Cipta on October 12, 2024 and sell it today you would lose (1,200) from holding Nusa Raya Cipta or give up 3.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.74%
Values	Daily Returns

Pelayaran Nelly Dwi  vs.  Nusa Raya Cipta

Pelayaran Nelly Dwi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pelayaran Nelly Dwi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Pelayaran Nelly is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Nusa Raya Cipta

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nusa Raya Cipta has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Nusa Raya is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Pelayaran Nelly and Nusa Raya

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

The idea behind Pelayaran Nelly Dwi and Nusa Raya Cipta 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..