Correlation Between Agro Yasa and Sunindo Adipersada
Can any of the company-specific risk be diversified away by investing in both Agro Yasa and Sunindo Adipersada 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 Agro Yasa and Sunindo Adipersada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agro Yasa Lestari and Sunindo Adipersada Tbk, you can compare the effects of market volatilities on Agro Yasa and Sunindo Adipersada 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 Agro Yasa with a short position of Sunindo Adipersada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Yasa and Sunindo Adipersada.
Diversification Opportunities for Agro Yasa and Sunindo Adipersada
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agro and Sunindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agro Yasa Lestari and Sunindo Adipersada Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunindo Adipersada Tbk and Agro Yasa 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 Agro Yasa Lestari are associated (or correlated) with Sunindo Adipersada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunindo Adipersada Tbk has no effect on the direction of Agro Yasa i.e., Agro Yasa and Sunindo Adipersada go up and down completely randomly.
Pair Corralation between Agro Yasa and Sunindo Adipersada
Assuming the 90 days trading horizon Agro Yasa Lestari is expected to generate 1.28 times more return on investment than Sunindo Adipersada. However, Agro Yasa is 1.28 times more volatile than Sunindo Adipersada Tbk. It trades about -0.01 of its potential returns per unit of risk. Sunindo Adipersada Tbk is currently generating about -0.12 per unit of risk. If you would invest 10,100 in Agro Yasa Lestari on September 3, 2024 and sell it today you would lose (4,100) from holding Agro Yasa Lestari or give up 40.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Agro Yasa Lestari vs. Sunindo Adipersada Tbk
Performance |
| Timeline |
| Agro Yasa Lestari |
| Sunindo Adipersada Tbk |
Agro Yasa and Sunindo Adipersada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Yasa and Sunindo Adipersada
The main advantage of trading using opposite Agro Yasa and Sunindo Adipersada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Yasa position performs unexpectedly, Sunindo Adipersada 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 Sunindo Adipersada will offset losses from the drop in Sunindo Adipersada's long position.| Agro Yasa vs. Sinergi Inti Plastindo | Agro Yasa vs. Bank Amar Indonesia | Agro Yasa vs. Andalan Sakti Primaindo | Agro Yasa vs. Era Mandiri Cemerlang |
| Sunindo Adipersada vs. Guna Timur Raya | Sunindo Adipersada vs. Yelooo Integra Datanet | Sunindo Adipersada vs. Agro Yasa Lestari | Sunindo Adipersada vs. Sinergi Inti Plastindo |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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