Correlation Between Sumber Alfaria and Sanurhasta Mitra
Can any of the company-specific risk be diversified away by investing in both Sumber Alfaria and Sanurhasta Mitra 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 Sanurhasta Mitra 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 Sanurhasta Mitra PT, you can compare the effects of market volatilities on Sumber Alfaria and Sanurhasta Mitra 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 Sanurhasta Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Alfaria and Sanurhasta Mitra.
Diversification Opportunities for Sumber Alfaria and Sanurhasta Mitra
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sumber and Sanurhasta is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Alfaria Trijaya and Sanurhasta Mitra PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanurhasta Mitra 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 Sanurhasta Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanurhasta Mitra has no effect on the direction of Sumber Alfaria i.e., Sumber Alfaria and Sanurhasta Mitra go up and down completely randomly.
Pair Corralation between Sumber Alfaria and Sanurhasta Mitra
Assuming the 90 days trading horizon Sumber Alfaria Trijaya is expected to under-perform the Sanurhasta Mitra. But the stock apears to be less risky and, when comparing its historical volatility, Sumber Alfaria Trijaya is 1.86 times less risky than Sanurhasta Mitra. The stock trades about -0.18 of its potential returns per unit of risk. The Sanurhasta Mitra PT is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest 7,900 in Sanurhasta Mitra PT on November 27, 2024 and sell it today you would earn a total of 5,500 from holding Sanurhasta Mitra PT or generate 69.62% 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. Sanurhasta Mitra PT
Performance |
| Timeline |
| Sumber Alfaria Trijaya |
| Sanurhasta Mitra |
Sumber Alfaria and Sanurhasta Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Alfaria and Sanurhasta Mitra
The main advantage of trading using opposite Sumber Alfaria and Sanurhasta Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Alfaria position performs unexpectedly, Sanurhasta Mitra 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 Sanurhasta Mitra will offset losses from the drop in Sanurhasta Mitra'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 |
| Sanurhasta Mitra vs. Galva Technologies Tbk | Sanurhasta Mitra vs. Dharma Polimetal Tbk | Sanurhasta Mitra vs. Kedawung Setia Industrial | Sanurhasta Mitra vs. HK Metals Utama |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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