Correlation Between Diagnos Laboratorium and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Diagnos Laboratorium and PT Sunter 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 Diagnos Laboratorium and PT Sunter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diagnos Laboratorium Utama and PT Sunter Lakeside, you can compare the effects of market volatilities on Diagnos Laboratorium and PT Sunter 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 Diagnos Laboratorium with a short position of PT Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diagnos Laboratorium and PT Sunter.
Diversification Opportunities for Diagnos Laboratorium and PT Sunter
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Diagnos and SNLK is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Diagnos Laboratorium Utama and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside and Diagnos Laboratorium 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 Diagnos Laboratorium Utama are associated (or correlated) with PT Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Diagnos Laboratorium i.e., Diagnos Laboratorium and PT Sunter go up and down completely randomly.
Pair Corralation between Diagnos Laboratorium and PT Sunter
Assuming the 90 days trading horizon Diagnos Laboratorium is expected to generate 4.16 times less return on investment than PT Sunter. But when comparing it to its historical volatility, Diagnos Laboratorium Utama is 1.24 times less risky than PT Sunter. It trades about 0.01 of its potential returns per unit of risk. PT Sunter Lakeside is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 63,500 in PT Sunter Lakeside on August 29, 2024 and sell it today you would earn a total of 5,000 from holding PT Sunter Lakeside or generate 7.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diagnos Laboratorium Utama vs. PT Sunter Lakeside
Performance |
| Timeline |
| Diagnos Laboratorium |
| PT Sunter Lakeside |
Diagnos Laboratorium and PT Sunter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diagnos Laboratorium and PT Sunter
The main advantage of trading using opposite Diagnos Laboratorium and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diagnos Laboratorium position performs unexpectedly, PT Sunter 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 PT Sunter will offset losses from the drop in PT Sunter's long position.| Diagnos Laboratorium vs. Prodia Widyahusada Tbk | Diagnos Laboratorium vs. Medikaloka Hermina PT | Diagnos Laboratorium vs. Digital Mediatama Maxima | Diagnos Laboratorium vs. Integra Indocabinet Tbk |
| PT Sunter vs. Menteng Heritage Realty | PT Sunter vs. Hotel Fitra International | PT Sunter vs. Jasa Armada Indonesia | PT Sunter vs. Cahayaputra Asa Keramik |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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