Correlation Between Austindo Nusantara and Sido Muncul
Can any of the company-specific risk be diversified away by investing in both Austindo Nusantara and Sido Muncul 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 Austindo Nusantara and Sido Muncul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austindo Nusantara Jaya and Sido Muncul PT, you can compare the effects of market volatilities on Austindo Nusantara and Sido Muncul 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 Austindo Nusantara with a short position of Sido Muncul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austindo Nusantara and Sido Muncul.
Diversification Opportunities for Austindo Nusantara and Sido Muncul
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Austindo and Sido is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Austindo Nusantara Jaya and Sido Muncul PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sido Muncul PT and Austindo Nusantara 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 Austindo Nusantara Jaya are associated (or correlated) with Sido Muncul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sido Muncul PT has no effect on the direction of Austindo Nusantara i.e., Austindo Nusantara and Sido Muncul go up and down completely randomly.
Pair Corralation between Austindo Nusantara and Sido Muncul
Assuming the 90 days trading horizon Austindo Nusantara is expected to generate 5.42 times less return on investment than Sido Muncul. But when comparing it to its historical volatility, Austindo Nusantara Jaya is 1.29 times less risky than Sido Muncul. It trades about 0.01 of its potential returns per unit of risk. Sido Muncul PT is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 47,738 in Sido Muncul PT on September 14, 2024 and sell it today you would earn a total of 10,762 from holding Sido Muncul PT or generate 22.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austindo Nusantara Jaya vs. Sido Muncul PT
Performance |
| Timeline |
| Austindo Nusantara Jaya |
| Sido Muncul PT |
Austindo Nusantara and Sido Muncul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austindo Nusantara and Sido Muncul
The main advantage of trading using opposite Austindo Nusantara and Sido Muncul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austindo Nusantara position performs unexpectedly, Sido Muncul 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 Sido Muncul will offset losses from the drop in Sido Muncul's long position.| Austindo Nusantara vs. Dharma Satya Nusantara | Austindo Nusantara vs. Provident Agro Tbk | Austindo Nusantara vs. Salim Ivomas Pratama | Austindo Nusantara vs. Jaya Agra Wattie |
| Sido Muncul vs. Austindo Nusantara Jaya | Sido Muncul vs. Garudafood Putra Putri | Sido Muncul vs. Provident Agro Tbk | Sido Muncul vs. Dharma Satya Nusantara |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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