Correlation Between Argo Pantes and Sejahtera Bintang
Can any of the company-specific risk be diversified away by investing in both Argo Pantes and Sejahtera Bintang 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 Argo Pantes and Sejahtera Bintang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Pantes Tbk and Sejahtera Bintang Abadi, you can compare the effects of market volatilities on Argo Pantes and Sejahtera Bintang 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 Argo Pantes with a short position of Sejahtera Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Pantes and Sejahtera Bintang.
Diversification Opportunities for Argo Pantes and Sejahtera Bintang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Argo and Sejahtera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Argo Pantes Tbk and Sejahtera Bintang Abadi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahtera Bintang Abadi and Argo Pantes 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 Argo Pantes Tbk are associated (or correlated) with Sejahtera Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejahtera Bintang Abadi has no effect on the direction of Argo Pantes i.e., Argo Pantes and Sejahtera Bintang go up and down completely randomly.
Pair Corralation between Argo Pantes and Sejahtera Bintang
Assuming the 90 days trading horizon Argo Pantes is expected to generate 10.48 times less return on investment than Sejahtera Bintang. But when comparing it to its historical volatility, Argo Pantes Tbk is 4.02 times less risky than Sejahtera Bintang. It trades about 0.03 of its potential returns per unit of risk. Sejahtera Bintang Abadi is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Sejahtera Bintang Abadi on September 1, 2024 and sell it today you would lose (100.00) from holding Sejahtera Bintang Abadi or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Argo Pantes Tbk vs. Sejahtera Bintang Abadi
Performance |
| Timeline |
| Argo Pantes Tbk |
| Sejahtera Bintang Abadi |
Argo Pantes and Sejahtera Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Pantes and Sejahtera Bintang
The main advantage of trading using opposite Argo Pantes and Sejahtera Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Pantes position performs unexpectedly, Sejahtera Bintang 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 Sejahtera Bintang will offset losses from the drop in Sejahtera Bintang's long position.| Argo Pantes vs. Japfa Comfeed Indonesia | Argo Pantes vs. Charoen Pokphand Indonesia | Argo Pantes vs. Erajaya Swasembada Tbk | Argo Pantes vs. Indofood Cbp Sukses |
| Sejahtera Bintang vs. Eratex Djaja Tbk | Sejahtera Bintang vs. Ever Shine Textile | Sejahtera Bintang vs. Argo Pantes Tbk | Sejahtera Bintang vs. Primarindo Asia Infrastructure |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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