Correlation Between Sumber Alfaria and Adira Dinamika
Can any of the company-specific risk be diversified away by investing in both Sumber Alfaria and Adira Dinamika 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 Sumber Alfaria and Adira Dinamika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumber Alfaria Trijaya and Adira Dinamika Multi, you can compare the effects of market volatilities on Sumber Alfaria and Adira Dinamika 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 Sumber Alfaria with a short position of Adira Dinamika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Alfaria and Adira Dinamika.
Diversification Opportunities for Sumber Alfaria and Adira Dinamika
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sumber and Adira is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Alfaria Trijaya and Adira Dinamika Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adira Dinamika Multi and Sumber Alfaria 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 Sumber Alfaria Trijaya are associated (or correlated) with Adira Dinamika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adira Dinamika Multi has no effect on the direction of Sumber Alfaria i.e., Sumber Alfaria and Adira Dinamika go up and down completely randomly.
Pair Corralation between Sumber Alfaria and Adira Dinamika
Assuming the 90 days trading horizon Sumber Alfaria Trijaya is expected to generate 4.01 times more return on investment than Adira Dinamika. However, Sumber Alfaria is 4.01 times more volatile than Adira Dinamika Multi. It trades about 0.03 of its potential returns per unit of risk. Adira Dinamika Multi is currently generating about 0.0 per unit of risk. If you would invest 286,000 in Sumber Alfaria Trijaya on November 5, 2024 and sell it today you would earn a total of 2,000 from holding Sumber Alfaria Trijaya or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sumber Alfaria Trijaya vs. Adira Dinamika Multi
Performance |
| Timeline |
| Sumber Alfaria Trijaya |
| Adira Dinamika Multi |
Sumber Alfaria and Adira Dinamika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Alfaria and Adira Dinamika
The main advantage of trading using opposite Sumber Alfaria and Adira Dinamika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Alfaria position performs unexpectedly, Adira Dinamika 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 Adira Dinamika will offset losses from the drop in Adira Dinamika's long position.| Sumber Alfaria vs. Elang Mahkota Teknologi | Sumber Alfaria vs. Ace Hardware Indonesia | Sumber Alfaria vs. BFI Finance Indonesia | Sumber Alfaria vs. Tower Bersama Infrastructure |
| Adira Dinamika vs. BFI Finance Indonesia | Adira Dinamika vs. Clipan Finance Indonesia | Adira Dinamika vs. Astra Otoparts Tbk | Adira Dinamika vs. Bank Danamon 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |