Correlation Between Saranacentral Bajatama and Wijaya Karya
Can any of the company-specific risk be diversified away by investing in both Saranacentral Bajatama and Wijaya Karya 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 Saranacentral Bajatama and Wijaya Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saranacentral Bajatama Tbk and Wijaya Karya Beton, you can compare the effects of market volatilities on Saranacentral Bajatama and Wijaya Karya 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 Saranacentral Bajatama with a short position of Wijaya Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saranacentral Bajatama and Wijaya Karya.
Diversification Opportunities for Saranacentral Bajatama and Wijaya Karya
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saranacentral and Wijaya is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Saranacentral Bajatama Tbk and Wijaya Karya Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wijaya Karya Beton and Saranacentral Bajatama 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 Saranacentral Bajatama Tbk are associated (or correlated) with Wijaya Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wijaya Karya Beton has no effect on the direction of Saranacentral Bajatama i.e., Saranacentral Bajatama and Wijaya Karya go up and down completely randomly.
Pair Corralation between Saranacentral Bajatama and Wijaya Karya
Assuming the 90 days trading horizon Saranacentral Bajatama is expected to generate 42.77 times less return on investment than Wijaya Karya. But when comparing it to its historical volatility, Saranacentral Bajatama Tbk is 2.43 times less risky than Wijaya Karya. It trades about 0.01 of its potential returns per unit of risk. Wijaya Karya Beton is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,400 in Wijaya Karya Beton on October 20, 2024 and sell it today you would earn a total of 400.00 from holding Wijaya Karya Beton or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saranacentral Bajatama Tbk vs. Wijaya Karya Beton
Performance |
| Timeline |
| Saranacentral Bajatama |
| Wijaya Karya Beton |
Saranacentral Bajatama and Wijaya Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saranacentral Bajatama and Wijaya Karya
The main advantage of trading using opposite Saranacentral Bajatama and Wijaya Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saranacentral Bajatama position performs unexpectedly, Wijaya Karya 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 Wijaya Karya will offset losses from the drop in Wijaya Karya's long position.| Saranacentral Bajatama vs. Trias Sentosa Tbk | Saranacentral Bajatama vs. Slj Global Tbk | Saranacentral Bajatama vs. Indo Acidatama Tbk | Saranacentral Bajatama vs. PT Mulia Industrindo |
| Wijaya Karya vs. Trias Sentosa Tbk | Wijaya Karya vs. Slj Global Tbk | Wijaya Karya vs. Indo Acidatama Tbk | Wijaya Karya vs. PT Mulia Industrindo |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |