Correlation Between Argha Karya and Sinergi Inti
Can any of the company-specific risk be diversified away by investing in both Argha Karya and Sinergi Inti 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 Argha Karya and Sinergi Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argha Karya Prima and Sinergi Inti Plastindo, you can compare the effects of market volatilities on Argha Karya and Sinergi Inti 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 Argha Karya with a short position of Sinergi Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argha Karya and Sinergi Inti.
Diversification Opportunities for Argha Karya and Sinergi Inti
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argha and Sinergi is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Argha Karya Prima and Sinergi Inti Plastindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinergi Inti Plastindo and Argha 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 Argha Karya Prima are associated (or correlated) with Sinergi Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinergi Inti Plastindo has no effect on the direction of Argha Karya i.e., Argha Karya and Sinergi Inti go up and down completely randomly.
Pair Corralation between Argha Karya and Sinergi Inti
Assuming the 90 days trading horizon Argha Karya Prima is expected to under-perform the Sinergi Inti. But the stock apears to be less risky and, when comparing its historical volatility, Argha Karya Prima is 1.86 times less risky than Sinergi Inti. The stock trades about -0.03 of its potential returns per unit of risk. The Sinergi Inti Plastindo is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,200 in Sinergi Inti Plastindo on December 6, 2024 and sell it today you would earn a total of 100.00 from holding Sinergi Inti Plastindo or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argha Karya Prima vs. Sinergi Inti Plastindo
Performance |
| Timeline |
| Argha Karya Prima |
| Sinergi Inti Plastindo |
Argha Karya and Sinergi Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argha Karya and Sinergi Inti
The main advantage of trading using opposite Argha Karya and Sinergi Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argha Karya position performs unexpectedly, Sinergi Inti 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 Sinergi Inti will offset losses from the drop in Sinergi Inti's long position.| Argha Karya vs. Asiaplast Industries Tbk | ||
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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.
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