Correlation Between Adhi Karya and Summarecon Agung
Can any of the company-specific risk be diversified away by investing in both Adhi Karya and Summarecon Agung 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 Adhi Karya and Summarecon Agung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adhi Karya Persero and Summarecon Agung Tbk, you can compare the effects of market volatilities on Adhi Karya and Summarecon Agung 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 Adhi Karya with a short position of Summarecon Agung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adhi Karya and Summarecon Agung.
Diversification Opportunities for Adhi Karya and Summarecon Agung
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Adhi and Summarecon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Adhi Karya Persero and Summarecon Agung Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summarecon Agung Tbk and Adhi Karya 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 Adhi Karya Persero are associated (or correlated) with Summarecon Agung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summarecon Agung Tbk has no effect on the direction of Adhi Karya i.e., Adhi Karya and Summarecon Agung go up and down completely randomly.
Pair Corralation between Adhi Karya and Summarecon Agung
Assuming the 90 days trading horizon Adhi Karya Persero is expected to under-perform the Summarecon Agung. In addition to that, Adhi Karya is 1.41 times more volatile than Summarecon Agung Tbk. It trades about -0.02 of its total potential returns per unit of risk. Summarecon Agung Tbk is currently generating about 0.02 per unit of volatility. If you would invest 51,988 in Summarecon Agung Tbk on August 24, 2024 and sell it today you would earn a total of 4,012 from holding Summarecon Agung Tbk or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adhi Karya Persero vs. Summarecon Agung Tbk
Performance |
| Timeline |
| Adhi Karya Persero |
| Summarecon Agung Tbk |
Adhi Karya and Summarecon Agung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adhi Karya and Summarecon Agung
The main advantage of trading using opposite Adhi Karya and Summarecon Agung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adhi Karya position performs unexpectedly, Summarecon Agung 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 Summarecon Agung will offset losses from the drop in Summarecon Agung's long position.| Adhi Karya vs. Wijaya Karya Beton | Adhi Karya vs. Waskita Karya Persero | Adhi Karya vs. Pembangunan Perumahan PT | Adhi Karya vs. Jasa Marga Tbk |
| Summarecon Agung vs. Ciputra Development Tbk | Summarecon Agung vs. Bumi Serpong Damai | Summarecon Agung vs. Alam Sutera Realty | Summarecon Agung vs. Lippo Karawaci Tbk |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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