Correlation Between Cisadane Sawit and Era Mandiri
Can any of the company-specific risk be diversified away by investing in both Cisadane Sawit and Era Mandiri 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 Cisadane Sawit and Era Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cisadane Sawit Raya and Era Mandiri Cemerlang, you can compare the effects of market volatilities on Cisadane Sawit and Era Mandiri 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 Cisadane Sawit with a short position of Era Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisadane Sawit and Era Mandiri.
Diversification Opportunities for Cisadane Sawit and Era Mandiri
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cisadane and Era is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cisadane Sawit Raya and Era Mandiri Cemerlang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Mandiri Cemerlang and Cisadane Sawit 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 Cisadane Sawit Raya are associated (or correlated) with Era Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Mandiri Cemerlang has no effect on the direction of Cisadane Sawit i.e., Cisadane Sawit and Era Mandiri go up and down completely randomly.
Pair Corralation between Cisadane Sawit and Era Mandiri
Assuming the 90 days trading horizon Cisadane Sawit Raya is expected to generate 0.79 times more return on investment than Era Mandiri. However, Cisadane Sawit Raya is 1.26 times less risky than Era Mandiri. It trades about 0.43 of its potential returns per unit of risk. Era Mandiri Cemerlang is currently generating about -0.48 per unit of risk. If you would invest 63,500 in Cisadane Sawit Raya on September 14, 2024 and sell it today you would earn a total of 10,000 from holding Cisadane Sawit Raya or generate 15.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cisadane Sawit Raya vs. Era Mandiri Cemerlang
Performance |
| Timeline |
| Cisadane Sawit Raya |
| Era Mandiri Cemerlang |
Cisadane Sawit and Era Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisadane Sawit and Era Mandiri
The main advantage of trading using opposite Cisadane Sawit and Era Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisadane Sawit position performs unexpectedly, Era Mandiri 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 Era Mandiri will offset losses from the drop in Era Mandiri's long position.| Cisadane Sawit vs. Mahkota Group Tbk | Cisadane Sawit vs. Palma Serasih PT | Cisadane Sawit vs. Diamond Food Indonesia | Cisadane Sawit vs. Saraswanti Anugerah Makmur |
| Era Mandiri vs. Mahkota Group Tbk | Era Mandiri vs. Palma Serasih PT | Era Mandiri vs. Cisadane Sawit Raya | Era Mandiri vs. Diamond Food 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets |