Correlation Between Ricky Putra and Roda Vivatex

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

By analyzing existing cross correlation between Ricky Putra Globalindo and Roda Vivatex Tbk, you can compare the effects of market volatilities on Ricky Putra and Roda Vivatex 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 Ricky Putra with a short position of Roda Vivatex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ricky Putra and Roda Vivatex.

Diversification Opportunities for Ricky Putra and Roda Vivatex

0.55

Correlation Coefficient

Ricky Putra  Roda Vivatex

Very weak diversification

The 3 months correlation between Ricky and Roda is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ricky Putra Globalindo and Roda Vivatex Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roda Vivatex Tbk and Ricky Putra 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 Ricky Putra Globalindo are associated (or correlated) with Roda Vivatex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roda Vivatex Tbk has no effect on the direction of Ricky Putra i.e., Ricky Putra and Roda Vivatex go up and down completely randomly.

Pair Corralation between Ricky Putra and Roda Vivatex

Assuming the 90 days trading horizon Ricky Putra Globalindo is expected to generate 1.2 times more return on investment than Roda Vivatex. However, Ricky Putra is 1.2 times more volatile than Roda Vivatex Tbk. It trades about -0.05 of its potential returns per unit of risk. Roda Vivatex Tbk is currently generating about -0.09 per unit of risk. If you would invest  7,000  in Ricky Putra Globalindo on October 23, 2024 and sell it today you would lose (200.00) from holding Ricky Putra Globalindo or give up 2.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Ricky Putra Globalindo  vs.  Roda Vivatex Tbk

Ricky Putra Globalindo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ricky Putra Globalindo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak 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.

Roda Vivatex Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Roda Vivatex Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Ricky Putra and Roda Vivatex

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

The idea behind Ricky Putra Globalindo and Roda Vivatex Tbk 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.