Correlation Between Alam Sutera and Sanurhasta Mitra
Can any of the company-specific risk be diversified away by investing in both Alam Sutera 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 Alam Sutera and Sanurhasta Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alam Sutera Realty and Sanurhasta Mitra PT, you can compare the effects of market volatilities on Alam Sutera 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 Alam Sutera with a short position of Sanurhasta Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alam Sutera and Sanurhasta Mitra.
Diversification Opportunities for Alam Sutera and Sanurhasta Mitra
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alam and Sanurhasta is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Alam Sutera Realty and Sanurhasta Mitra PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanurhasta Mitra and Alam Sutera 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 Alam Sutera Realty 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 Alam Sutera i.e., Alam Sutera and Sanurhasta Mitra go up and down completely randomly.
Pair Corralation between Alam Sutera and Sanurhasta Mitra
Assuming the 90 days trading horizon Alam Sutera is expected to generate 3.05 times less return on investment than Sanurhasta Mitra. But when comparing it to its historical volatility, Alam Sutera Realty is 1.62 times less risky than Sanurhasta Mitra. It trades about 0.01 of its potential returns per unit of risk. Sanurhasta Mitra PT is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,300 in Sanurhasta Mitra PT on September 13, 2024 and sell it today you would lose (300.00) from holding Sanurhasta Mitra PT or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alam Sutera Realty vs. Sanurhasta Mitra PT
Performance |
| Timeline |
| Alam Sutera Realty |
| Sanurhasta Mitra |
Alam Sutera and Sanurhasta Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alam Sutera and Sanurhasta Mitra
The main advantage of trading using opposite Alam Sutera and Sanurhasta Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alam Sutera 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.| Alam Sutera vs. Ciputra Development Tbk | Alam Sutera vs. Bumi Serpong Damai | Alam Sutera vs. Lippo Karawaci Tbk |
| Sanurhasta Mitra vs. Ciputra Development Tbk | Sanurhasta Mitra vs. Bumi Serpong Damai | Sanurhasta Mitra vs. Alam Sutera Realty | Sanurhasta Mitra vs. Lippo Karawaci Tbk |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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