Correlation Between Puri Global and Pollux Investasi
Can any of the company-specific risk be diversified away by investing in both Puri Global and Pollux Investasi 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 Puri Global and Pollux Investasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puri Global Sukses and Pollux Investasi Internasional, you can compare the effects of market volatilities on Puri Global and Pollux Investasi 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 Puri Global with a short position of Pollux Investasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puri Global and Pollux Investasi.
Diversification Opportunities for Puri Global and Pollux Investasi
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puri and Pollux is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Puri Global Sukses and Pollux Investasi Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pollux Investasi Int and Puri Global 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 Puri Global Sukses are associated (or correlated) with Pollux Investasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pollux Investasi Int has no effect on the direction of Puri Global i.e., Puri Global and Pollux Investasi go up and down completely randomly.
Pair Corralation between Puri Global and Pollux Investasi
Assuming the 90 days trading horizon Puri Global Sukses is expected to generate 3.94 times more return on investment than Pollux Investasi. However, Puri Global is 3.94 times more volatile than Pollux Investasi Internasional. It trades about 0.14 of its potential returns per unit of risk. Pollux Investasi Internasional is currently generating about -0.01 per unit of risk. If you would invest 19,200 in Puri Global Sukses on October 12, 2024 and sell it today you would earn a total of 8,200 from holding Puri Global Sukses or generate 42.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Puri Global Sukses vs. Pollux Investasi Internasional
Performance |
Timeline |
Puri Global Sukses |
Pollux Investasi Int |
Puri Global and Pollux Investasi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Puri Global and Pollux Investasi
The main advantage of trading using opposite Puri Global and Pollux Investasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puri Global position performs unexpectedly, Pollux Investasi 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 Pollux Investasi will offset losses from the drop in Pollux Investasi's long position.Puri Global vs. Rockfields Property Indonesia | Puri Global vs. Perintis Triniti Properti | Puri Global vs. Nusantara Almazia | Puri Global vs. Bima Sakti Pertiwi |
Pollux Investasi vs. Pollux Properti Indonesia | Pollux Investasi vs. Maha Properti Indonesia | Pollux Investasi vs. Mega Manunggal Property | Pollux Investasi vs. Urban Jakarta Propertindo |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |