Correlation Between United Tractors and Anugerah Kagum
Can any of the company-specific risk be diversified away by investing in both United Tractors and Anugerah Kagum 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 United Tractors and Anugerah Kagum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Tractors Tbk and Anugerah Kagum Karya, you can compare the effects of market volatilities on United Tractors and Anugerah Kagum 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 United Tractors with a short position of Anugerah Kagum. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Tractors and Anugerah Kagum.
Diversification Opportunities for United Tractors and Anugerah Kagum
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Anugerah is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding United Tractors Tbk and Anugerah Kagum Karya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anugerah Kagum Karya and United Tractors 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 United Tractors Tbk are associated (or correlated) with Anugerah Kagum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anugerah Kagum Karya has no effect on the direction of United Tractors i.e., United Tractors and Anugerah Kagum go up and down completely randomly.
Pair Corralation between United Tractors and Anugerah Kagum
Assuming the 90 days trading horizon United Tractors Tbk is expected to generate 0.33 times more return on investment than Anugerah Kagum. However, United Tractors Tbk is 3.04 times less risky than Anugerah Kagum. It trades about -0.54 of its potential returns per unit of risk. Anugerah Kagum Karya is currently generating about -0.83 per unit of risk. If you would invest 2,624,828 in United Tractors Tbk on February 7, 2024 and sell it today you would lose (399,828) from holding United Tractors Tbk or give up 15.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
United Tractors Tbk vs. Anugerah Kagum Karya
Performance |
Timeline |
United Tractors Tbk |
Anugerah Kagum Karya |
United Tractors and Anugerah Kagum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Tractors and Anugerah Kagum
The main advantage of trading using opposite United Tractors and Anugerah Kagum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Tractors position performs unexpectedly, Anugerah Kagum 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 Anugerah Kagum will offset losses from the drop in Anugerah Kagum's long position.United Tractors vs. Astra International Tbk | United Tractors vs. Bukit Asam Tbk | United Tractors vs. Semen Indonesia Persero | United Tractors vs. Indofood Sukses Makmur |
Anugerah Kagum vs. Asiaplast Industries Tbk | Anugerah Kagum vs. Argha Karya Prima | Anugerah Kagum vs. Alumindo Light Metal | Anugerah Kagum vs. Asahimas Flat Glass |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |