Correlation Between Wulandari Bangun and Satria Mega
Can any of the company-specific risk be diversified away by investing in both Wulandari Bangun and Satria Mega 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 Wulandari Bangun and Satria Mega into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wulandari Bangun Laksana and Satria Mega Kencana, you can compare the effects of market volatilities on Wulandari Bangun and Satria Mega 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 Wulandari Bangun with a short position of Satria Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wulandari Bangun and Satria Mega.
Diversification Opportunities for Wulandari Bangun and Satria Mega
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wulandari and Satria is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Wulandari Bangun Laksana and Satria Mega Kencana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satria Mega Kencana and Wulandari Bangun 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 Wulandari Bangun Laksana are associated (or correlated) with Satria Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satria Mega Kencana has no effect on the direction of Wulandari Bangun i.e., Wulandari Bangun and Satria Mega go up and down completely randomly.
Pair Corralation between Wulandari Bangun and Satria Mega
Assuming the 90 days trading horizon Wulandari Bangun is expected to generate 1.62 times less return on investment than Satria Mega. But when comparing it to its historical volatility, Wulandari Bangun Laksana is 1.88 times less risky than Satria Mega. It trades about 0.03 of its potential returns per unit of risk. Satria Mega Kencana is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 46,200 in Satria Mega Kencana on August 26, 2024 and sell it today you would lose (12,400) from holding Satria Mega Kencana or give up 26.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wulandari Bangun Laksana vs. Satria Mega Kencana
Performance |
| Timeline |
| Wulandari Bangun Laksana |
| Satria Mega Kencana |
Wulandari Bangun and Satria Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wulandari Bangun and Satria Mega
The main advantage of trading using opposite Wulandari Bangun and Satria Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wulandari Bangun position performs unexpectedly, Satria Mega 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 Satria Mega will offset losses from the drop in Satria Mega's long position.| Wulandari Bangun vs. City Retail Developments | Wulandari Bangun vs. Lion Metal Works | Wulandari Bangun vs. HK Metals Utama | Wulandari Bangun vs. Bank Ocbc Nisp |
| Satria Mega vs. Shield On Service | Satria Mega vs. MNC Studios International | Satria Mega vs. Royal Prima PT | Satria Mega vs. Sanurhasta Mitra PT |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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