Correlation Between Akr Corporindo and PT Sarana
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and PT Sarana 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 Sarana 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 Sarana Menara, you can compare the effects of market volatilities on Akr Corporindo and PT Sarana 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 Sarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and PT Sarana.
Diversification Opportunities for Akr Corporindo and PT Sarana
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Akr and TOWR is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and PT Sarana Menara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sarana Menara 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 Sarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sarana Menara has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and PT Sarana go up and down completely randomly.
Pair Corralation between Akr Corporindo and PT Sarana
Assuming the 90 days trading horizon Akr Corporindo Tbk is expected to under-perform the PT Sarana. But the stock apears to be less risky and, when comparing its historical volatility, Akr Corporindo Tbk is 1.02 times less risky than PT Sarana. The stock trades about -0.06 of its potential returns per unit of risk. The PT Sarana Menara is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 63,451 in PT Sarana Menara on November 3, 2024 and sell it today you would earn a total of 2,549 from holding PT Sarana Menara or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akr Corporindo Tbk vs. PT Sarana Menara
Performance |
| Timeline |
| Akr Corporindo Tbk |
| PT Sarana Menara |
Akr Corporindo and PT Sarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akr Corporindo and PT Sarana
The main advantage of trading using opposite Akr Corporindo and PT Sarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, PT Sarana 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 Sarana will offset losses from the drop in PT Sarana'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 Sarana vs. Tower Bersama Infrastructure | PT Sarana vs. Merdeka Copper Gold | PT Sarana vs. XL Axiata Tbk | PT Sarana vs. Japfa Comfeed Indonesia |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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