Correlation Between Sumber Alfaria and PT Janu
Can any of the company-specific risk be diversified away by investing in both Sumber Alfaria and PT Janu 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 PT Janu 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 PT Janu Putra, you can compare the effects of market volatilities on Sumber Alfaria and PT Janu 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 PT Janu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Alfaria and PT Janu.
Diversification Opportunities for Sumber Alfaria and PT Janu
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sumber and AYAM is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Alfaria Trijaya and PT Janu Putra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Janu Putra 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 PT Janu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Janu Putra has no effect on the direction of Sumber Alfaria i.e., Sumber Alfaria and PT Janu go up and down completely randomly.
Pair Corralation between Sumber Alfaria and PT Janu
Assuming the 90 days trading horizon Sumber Alfaria Trijaya is expected to under-perform the PT Janu. But the stock apears to be less risky and, when comparing its historical volatility, Sumber Alfaria Trijaya is 1.19 times less risky than PT Janu. The stock trades about -0.05 of its potential returns per unit of risk. The PT Janu Putra is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 12,000 in PT Janu Putra on November 28, 2024 and sell it today you would earn a total of 2,800 from holding PT Janu Putra or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Sumber Alfaria Trijaya vs. PT Janu Putra
Performance |
| Timeline |
| Sumber Alfaria Trijaya |
| PT Janu Putra |
Sumber Alfaria and PT Janu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Alfaria and PT Janu
The main advantage of trading using opposite Sumber Alfaria and PT Janu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Alfaria position performs unexpectedly, PT Janu 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 Janu will offset losses from the drop in PT Janu'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 |
| PT Janu vs. PT Hetzer Medical | PT Janu vs. City Retail Developments | PT Janu vs. Smartfren Telecom Tbk | PT Janu vs. Lotte Chemical Titan |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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