Correlation Between Sentul City and Kawasan Industri
Can any of the company-specific risk be diversified away by investing in both Sentul City and Kawasan Industri 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 Sentul City and Kawasan Industri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentul City Tbk and Kawasan Industri Jababeka, you can compare the effects of market volatilities on Sentul City and Kawasan Industri 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 Sentul City with a short position of Kawasan Industri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentul City and Kawasan Industri.
Diversification Opportunities for Sentul City and Kawasan Industri
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sentul and Kawasan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sentul City Tbk and Kawasan Industri Jababeka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kawasan Industri Jababeka and Sentul City 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 Sentul City Tbk are associated (or correlated) with Kawasan Industri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kawasan Industri Jababeka has no effect on the direction of Sentul City i.e., Sentul City and Kawasan Industri go up and down completely randomly.
Pair Corralation between Sentul City and Kawasan Industri
Assuming the 90 days trading horizon Sentul City Tbk is expected to under-perform the Kawasan Industri. In addition to that, Sentul City is 3.18 times more volatile than Kawasan Industri Jababeka. It trades about -0.03 of its total potential returns per unit of risk. Kawasan Industri Jababeka is currently generating about 0.11 per unit of volatility. If you would invest 18,800 in Kawasan Industri Jababeka on October 23, 2024 and sell it today you would earn a total of 400.00 from holding Kawasan Industri Jababeka or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentul City Tbk vs. Kawasan Industri Jababeka
Performance |
| Timeline |
| Sentul City Tbk |
| Kawasan Industri Jababeka |
Sentul City and Kawasan Industri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentul City and Kawasan Industri
The main advantage of trading using opposite Sentul City and Kawasan Industri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentul City position performs unexpectedly, Kawasan Industri 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 Kawasan Industri will offset losses from the drop in Kawasan Industri's long position.| Sentul City vs. Alam Sutera Realty | Sentul City vs. Kawasan Industri Jababeka | Sentul City vs. Lippo Karawaci Tbk | Sentul City vs. Ciputra Development Tbk |
| Kawasan Industri vs. Bakrieland Development Tbk | Kawasan Industri vs. Ciputra Development Tbk | Kawasan Industri vs. Sentul City Tbk | Kawasan Industri vs. Solusi Bangun Indonesia |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |