Correlation Between American Balanced and Sumber Tani
Can any of the company-specific risk be diversified away by investing in both American Balanced and Sumber Tani 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 American Balanced and Sumber Tani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Balanced and Sumber Tani Agung, you can compare the effects of market volatilities on American Balanced and Sumber Tani 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 American Balanced with a short position of Sumber Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Balanced and Sumber Tani.
Diversification Opportunities for American Balanced and Sumber Tani
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Sumber is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding American Balanced and Sumber Tani Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Tani Agung and American Balanced 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 American Balanced are associated (or correlated) with Sumber Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Tani Agung has no effect on the direction of American Balanced i.e., American Balanced and Sumber Tani go up and down completely randomly.
Pair Corralation between American Balanced and Sumber Tani
Assuming the 90 days horizon American Balanced is expected to generate 0.42 times more return on investment than Sumber Tani. However, American Balanced is 2.37 times less risky than Sumber Tani. It trades about 0.09 of its potential returns per unit of risk. Sumber Tani Agung is currently generating about 0.0 per unit of risk. If you would invest 2,882 in American Balanced on October 24, 2024 and sell it today you would earn a total of 657.00 from holding American Balanced or generate 22.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.11% |
| Values | Daily Returns |
American Balanced vs. Sumber Tani Agung
Performance |
| Timeline |
| American Balanced |
| Sumber Tani Agung |
American Balanced and Sumber Tani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Balanced and Sumber Tani
The main advantage of trading using opposite American Balanced and Sumber Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Balanced position performs unexpectedly, Sumber Tani 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 Sumber Tani will offset losses from the drop in Sumber Tani's long position.| American Balanced vs. Income Fund Of | American Balanced vs. Capital Income Builder | American Balanced vs. Capital World Growth | American Balanced vs. Growth Fund Of |
| Sumber Tani vs. Triputra Agro Persada | Sumber Tani vs. Dayamitra Telekomunikasi PT | Sumber Tani vs. RMK Energy PT | Sumber Tani vs. Dharma Satya Nusantara |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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