Correlation Between Sumber Alfaria and Arkha Jayanti
Can any of the company-specific risk be diversified away by investing in both Sumber Alfaria and Arkha Jayanti 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 Arkha Jayanti 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 Arkha Jayanti Persada, you can compare the effects of market volatilities on Sumber Alfaria and Arkha Jayanti 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 Arkha Jayanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Alfaria and Arkha Jayanti.
Diversification Opportunities for Sumber Alfaria and Arkha Jayanti
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sumber and Arkha is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Alfaria Trijaya and Arkha Jayanti Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arkha Jayanti Persada 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 Arkha Jayanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arkha Jayanti Persada has no effect on the direction of Sumber Alfaria i.e., Sumber Alfaria and Arkha Jayanti go up and down completely randomly.
Pair Corralation between Sumber Alfaria and Arkha Jayanti
Assuming the 90 days trading horizon Sumber Alfaria Trijaya is expected to generate 0.46 times more return on investment than Arkha Jayanti. However, Sumber Alfaria Trijaya is 2.16 times less risky than Arkha Jayanti. It trades about 0.03 of its potential returns per unit of risk. Arkha Jayanti Persada is currently generating about -0.03 per unit of risk. If you would invest 255,151 in Sumber Alfaria Trijaya on September 12, 2024 and sell it today you would earn a total of 46,849 from holding Sumber Alfaria Trijaya or generate 18.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sumber Alfaria Trijaya vs. Arkha Jayanti Persada
Performance |
| Timeline |
| Sumber Alfaria Trijaya |
| Arkha Jayanti Persada |
Sumber Alfaria and Arkha Jayanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Alfaria and Arkha Jayanti
The main advantage of trading using opposite Sumber Alfaria and Arkha Jayanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Alfaria position performs unexpectedly, Arkha Jayanti 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 Arkha Jayanti will offset losses from the drop in Arkha Jayanti'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 |
| Arkha Jayanti vs. Berkah Prima Perkasa | Arkha Jayanti vs. Jasnita Telekomindo Tbk | Arkha Jayanti vs. Darmi Bersaudara Tbk | Arkha Jayanti vs. Agro Yasa Lestari |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |