Correlation Between Nusantara Inti and City Retail

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

By analyzing existing cross correlation between Nusantara Inti Corpora and City Retail Developments, you can compare the effects of market volatilities on Nusantara Inti and City Retail 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 Nusantara Inti with a short position of City Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nusantara Inti and City Retail.

Diversification Opportunities for Nusantara Inti and City Retail

0.0

Correlation Coefficient

Nusantara Inti  City Retail

Pay attention - limited upside

The 3 months correlation between Nusantara and City is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nusantara Inti Corpora and City Retail Developments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Retail Developments and Nusantara Inti 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 Nusantara Inti Corpora are associated (or correlated) with City Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Retail Developments has no effect on the direction of Nusantara Inti i.e., Nusantara Inti and City Retail go up and down completely randomly.

Pair Corralation between Nusantara Inti and City Retail

If you would invest  14,000  in City Retail Developments on June 29, 2024 and sell it today you would earn a total of  0.00  from holding City Retail Developments or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Nusantara Inti Corpora  vs.  City Retail Developments

Nusantara Inti Corpora

Risk-Adjusted Performance

0 of 100

Very Weak

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

City Retail Developments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days City Retail Developments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, City Retail 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 Nusantara Inti and City Retail

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

The idea behind Nusantara Inti Corpora and City Retail Developments 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.