Correlation Between Diagnos Laboratorium and Saratoga Investama
Can any of the company-specific risk be diversified away by investing in both Diagnos Laboratorium and Saratoga Investama 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 Saratoga Investama 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 Saratoga Investama Sedaya, you can compare the effects of market volatilities on Diagnos Laboratorium and Saratoga Investama 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 Saratoga Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diagnos Laboratorium and Saratoga Investama.
Diversification Opportunities for Diagnos Laboratorium and Saratoga Investama
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Diagnos and Saratoga is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Diagnos Laboratorium Utama and Saratoga Investama Sedaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investama Sedaya 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 Saratoga Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investama Sedaya has no effect on the direction of Diagnos Laboratorium i.e., Diagnos Laboratorium and Saratoga Investama go up and down completely randomly.
Pair Corralation between Diagnos Laboratorium and Saratoga Investama
Assuming the 90 days trading horizon Diagnos Laboratorium is expected to generate 1.42 times less return on investment than Saratoga Investama. But when comparing it to its historical volatility, Diagnos Laboratorium Utama is 1.15 times less risky than Saratoga Investama. It trades about 0.04 of its potential returns per unit of risk. Saratoga Investama Sedaya is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 183,500 in Saratoga Investama Sedaya on November 27, 2024 and sell it today you would earn a total of 3,000 from holding Saratoga Investama Sedaya or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diagnos Laboratorium Utama vs. Saratoga Investama Sedaya
Performance |
| Timeline |
| Diagnos Laboratorium |
| Saratoga Investama Sedaya |
Diagnos Laboratorium and Saratoga Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diagnos Laboratorium and Saratoga Investama
The main advantage of trading using opposite Diagnos Laboratorium and Saratoga Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diagnos Laboratorium position performs unexpectedly, Saratoga Investama 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 Saratoga Investama will offset losses from the drop in Saratoga Investama's long position.| Diagnos Laboratorium vs. Prodia Widyahusada Tbk | Diagnos Laboratorium vs. Medikaloka Hermina PT | Diagnos Laboratorium vs. Itama Ranoraya | Diagnos Laboratorium vs. Digital Mediatama Maxima |
| Saratoga Investama vs. Elang Mahkota Teknologi | Saratoga Investama vs. Mitra Pinasthika Mustika | Saratoga Investama vs. Tower Bersama Infrastructure | Saratoga Investama vs. Merdeka Copper Gold |
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.
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