Correlation Between Stellar and Citra Borneo

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

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

Diversification Opportunities for Stellar and Citra Borneo

-0.16

Correlation Coefficient

Stellar  Citra Borneo

Good diversification

The 3 months correlation between Stellar and Citra is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Stellar 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 Stellar 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 Stellar 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 Stellar i.e., Stellar and Citra Borneo go up and down completely randomly.

Pair Corralation between Stellar and Citra Borneo

Assuming the 90 days trading horizon Stellar is expected to under-perform the Citra Borneo. In addition to that, Stellar is 2.45 times more volatile than Citra Borneo Utama. It trades about -0.06 of its total potential returns per unit of risk. Citra Borneo Utama is currently generating about 0.07 per unit of volatility. If you would invest  91,500  in Citra Borneo Utama on December 21, 2024 and sell it today you would earn a total of  8,000  from holding Citra Borneo Utama or generate 8.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	89.06%
Values	Daily Returns

Stellar  vs.  Citra Borneo Utama

Stellar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stellar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's primary indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Stellar shareholders.

Citra Borneo Utama

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Citra Borneo Utama are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Citra Borneo may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Stellar and Citra Borneo

The main advantage of trading using opposite Stellar and Citra Borneo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar 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 Stellar 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.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.