Correlation Between Eastparc Hotel and Satria Mega
Can any of the company-specific risk be diversified away by investing in both Eastparc Hotel 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 Eastparc Hotel and Satria Mega into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastparc Hotel Tbk and Satria Mega Kencana, you can compare the effects of market volatilities on Eastparc Hotel 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 Eastparc Hotel with a short position of Satria Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastparc Hotel and Satria Mega.
Diversification Opportunities for Eastparc Hotel and Satria Mega
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastparc and Satria is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eastparc Hotel Tbk 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 Eastparc Hotel 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 Eastparc Hotel Tbk 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 Eastparc Hotel i.e., Eastparc Hotel and Satria Mega go up and down completely randomly.
Pair Corralation between Eastparc Hotel and Satria Mega
Assuming the 90 days trading horizon Eastparc Hotel Tbk is expected to generate 1.05 times more return on investment than Satria Mega. However, Eastparc Hotel is 1.05 times more volatile than Satria Mega Kencana. It trades about -0.11 of its potential returns per unit of risk. Satria Mega Kencana is currently generating about -0.15 per unit of risk. If you would invest 11,600 in Eastparc Hotel Tbk on August 30, 2024 and sell it today you would lose (900.00) from holding Eastparc Hotel Tbk or give up 7.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastparc Hotel Tbk vs. Satria Mega Kencana
Performance |
| Timeline |
| Eastparc Hotel Tbk |
| Satria Mega Kencana |
Eastparc Hotel and Satria Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastparc Hotel and Satria Mega
The main advantage of trading using opposite Eastparc Hotel and Satria Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastparc Hotel 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.| Eastparc Hotel vs. Menteng Heritage Realty | Eastparc Hotel vs. Hotel Fitra International | Eastparc Hotel vs. Jasa Armada Indonesia | Eastparc Hotel vs. Cahayaputra Asa Keramik |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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