Correlation Between Alam Sutera and Ristia Bintang
Can any of the company-specific risk be diversified away by investing in both Alam Sutera and Ristia 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 Alam Sutera and Ristia Bintang 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 Ristia Bintang Mahkotasejati, you can compare the effects of market volatilities on Alam Sutera and Ristia 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 Alam Sutera with a short position of Ristia Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alam Sutera and Ristia Bintang.
Diversification Opportunities for Alam Sutera and Ristia Bintang
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alam and Ristia is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Alam Sutera Realty and Ristia Bintang Mahkotasejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ristia Bintang Mahko 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 Ristia Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ristia Bintang Mahko has no effect on the direction of Alam Sutera i.e., Alam Sutera and Ristia Bintang go up and down completely randomly.
Pair Corralation between Alam Sutera and Ristia Bintang
Assuming the 90 days trading horizon Alam Sutera Realty is expected to generate 0.96 times more return on investment than Ristia Bintang. However, Alam Sutera Realty is 1.04 times less risky than Ristia Bintang. It trades about 0.0 of its potential returns per unit of risk. Ristia Bintang Mahkotasejati is currently generating about -0.05 per unit of risk. If you would invest 16,900 in Alam Sutera Realty on August 24, 2024 and sell it today you would lose (1,100) from holding Alam Sutera Realty or give up 6.51% 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. Ristia Bintang Mahkotasejati
Performance |
| Timeline |
| Alam Sutera Realty |
| Ristia Bintang Mahko |
Alam Sutera and Ristia Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alam Sutera and Ristia Bintang
The main advantage of trading using opposite Alam Sutera and Ristia Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alam Sutera position performs unexpectedly, Ristia 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 Ristia Bintang will offset losses from the drop in Ristia Bintang's long position.| Alam Sutera vs. Bumi Serpong Damai | Alam Sutera vs. Summarecon Agung Tbk | Alam Sutera vs. Lippo Karawaci Tbk | Alam Sutera vs. Ciputra Development Tbk |
| Ristia Bintang vs. Ciputra Development Tbk | Ristia Bintang vs. Bumi Serpong Damai | Ristia Bintang vs. Alam Sutera Realty | Ristia Bintang 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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