Correlation Between Akr Corporindo and PT Sreeya
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and PT Sreeya 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 Akr Corporindo and PT Sreeya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and PT Sreeya Sewu, you can compare the effects of market volatilities on Akr Corporindo and PT Sreeya 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 Akr Corporindo with a short position of PT Sreeya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and PT Sreeya.
Diversification Opportunities for Akr Corporindo and PT Sreeya
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Akr and SIPD is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and PT Sreeya Sewu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sreeya Sewu and Akr Corporindo 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 Akr Corporindo Tbk are associated (or correlated) with PT Sreeya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sreeya Sewu has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and PT Sreeya go up and down completely randomly.
Pair Corralation between Akr Corporindo and PT Sreeya
Assuming the 90 days trading horizon Akr Corporindo Tbk is expected to under-perform the PT Sreeya. But the stock apears to be less risky and, when comparing its historical volatility, Akr Corporindo Tbk is 1.51 times less risky than PT Sreeya. The stock trades about -0.16 of its potential returns per unit of risk. The PT Sreeya Sewu is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 87,500 in PT Sreeya Sewu on August 30, 2024 and sell it today you would lose (3,000) from holding PT Sreeya Sewu or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akr Corporindo Tbk vs. PT Sreeya Sewu
Performance |
| Timeline |
| Akr Corporindo Tbk |
| PT Sreeya Sewu |
Akr Corporindo and PT Sreeya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akr Corporindo and PT Sreeya
The main advantage of trading using opposite Akr Corporindo and PT Sreeya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, PT Sreeya 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 PT Sreeya will offset losses from the drop in PT Sreeya's long position.| Akr Corporindo vs. Charoen Pokphand Indonesia | Akr Corporindo vs. Indocement Tunggal Prakarsa | Akr Corporindo vs. Bumi Serpong Damai | Akr Corporindo vs. Jasa Marga Tbk |
| PT Sreeya vs. Central Proteina Prima | PT Sreeya vs. Kawasan Industri Jababeka | PT Sreeya vs. Tunas Baru Lampung | PT Sreeya vs. Slj Global 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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