Correlation Between Agung Podomoro and Summarecon Agung
Can any of the company-specific risk be diversified away by investing in both Agung Podomoro and Summarecon Agung 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 Agung Podomoro and Summarecon Agung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agung Podomoro Land and Summarecon Agung Tbk, you can compare the effects of market volatilities on Agung Podomoro and Summarecon Agung 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 Agung Podomoro with a short position of Summarecon Agung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agung Podomoro and Summarecon Agung.
Diversification Opportunities for Agung Podomoro and Summarecon Agung
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agung and Summarecon is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Agung Podomoro Land and Summarecon Agung Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summarecon Agung Tbk and Agung Podomoro 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 Agung Podomoro Land are associated (or correlated) with Summarecon Agung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summarecon Agung Tbk has no effect on the direction of Agung Podomoro i.e., Agung Podomoro and Summarecon Agung go up and down completely randomly.
Pair Corralation between Agung Podomoro and Summarecon Agung
Assuming the 90 days trading horizon Agung Podomoro Land is expected to under-perform the Summarecon Agung. But the stock apears to be less risky and, when comparing its historical volatility, Agung Podomoro Land is 1.02 times less risky than Summarecon Agung. The stock trades about -0.03 of its potential returns per unit of risk. The Summarecon Agung Tbk is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 69,479 in Summarecon Agung Tbk on August 31, 2024 and sell it today you would lose (15,979) from holding Summarecon Agung Tbk or give up 23.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.44% |
| Values | Daily Returns |
Agung Podomoro Land vs. Summarecon Agung Tbk
Performance |
| Timeline |
| Agung Podomoro Land |
| Summarecon Agung Tbk |
Agung Podomoro and Summarecon Agung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agung Podomoro and Summarecon Agung
The main advantage of trading using opposite Agung Podomoro and Summarecon Agung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agung Podomoro position performs unexpectedly, Summarecon Agung 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 Summarecon Agung will offset losses from the drop in Summarecon Agung's long position.| Agung Podomoro vs. Alam Sutera Realty | Agung Podomoro vs. Bumi Serpong Damai | Agung Podomoro vs. Summarecon Agung Tbk | Agung Podomoro vs. Ciputra Development Tbk |
| Summarecon Agung vs. Lippo Cikarang Tbk | Summarecon Agung vs. Lippo Karawaci Tbk | Summarecon Agung vs. Intiland Development Tbk | Summarecon Agung vs. Mitra Pinasthika Mustika |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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