Two Equities Correlation Analysis
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ADES.JK
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Akasha Wira and NYSE Composite
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Akasha and NYSE is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Akasha Wira International and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Akasha Wira 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 Akasha Wira International are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Akasha Wira i.e., Akasha Wira and NYSE Composite go up and down completely randomly.
Pair Corralation between Akasha Wira and NYSE Composite
Assuming the 90 days trading horizon Akasha Wira International is expected to generate 1.96 times more return on investment than NYSE Composite. However, Akasha Wira is 1.96 times more volatile than NYSE Composite. It trades about -0.01 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of risk. If you would invest 912,500 in Akasha Wira International on January 26, 2024 and sell it today you would lose (2,500) from holding Akasha Wira International or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
Akasha Wira International vs. NYSE Composite
Performance |
| Timeline |
Akasha Wira and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Akasha Wira International
Pair trading matchups for Akasha Wira
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Akasha Wira and NYSE Composite
The main advantage of trading using opposite Akasha Wira and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akasha Wira position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Akasha Wira vs. Vale Indonesia Tbk | Akasha Wira vs. Timah Persero Tbk | Akasha Wira vs. United Tractors Tbk | Akasha Wira vs. Semen Indonesia Persero |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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