Correlation Between PT Data and Smartfren Telecom
Can any of the company-specific risk be diversified away by investing in both PT Data and Smartfren Telecom 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 PT Data and Smartfren Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Data Sinergitama and Smartfren Telecom Tbk, you can compare the effects of market volatilities on PT Data and Smartfren Telecom 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 PT Data with a short position of Smartfren Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Data and Smartfren Telecom.
Diversification Opportunities for PT Data and Smartfren Telecom
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ELIT and Smartfren is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PT Data Sinergitama and Smartfren Telecom Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartfren Telecom Tbk and PT Data 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 PT Data Sinergitama are associated (or correlated) with Smartfren Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartfren Telecom Tbk has no effect on the direction of PT Data i.e., PT Data and Smartfren Telecom go up and down completely randomly.
Pair Corralation between PT Data and Smartfren Telecom
Assuming the 90 days trading horizon PT Data Sinergitama is expected to under-perform the Smartfren Telecom. In addition to that, PT Data is 1.04 times more volatile than Smartfren Telecom Tbk. It trades about -0.37 of its total potential returns per unit of risk. Smartfren Telecom Tbk is currently generating about -0.14 per unit of volatility. If you would invest 2,700 in Smartfren Telecom Tbk on September 1, 2024 and sell it today you would lose (200.00) from holding Smartfren Telecom Tbk or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Data Sinergitama vs. Smartfren Telecom Tbk
Performance |
| Timeline |
| PT Data Sinergitama |
| Smartfren Telecom Tbk |
PT Data and Smartfren Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Data and Smartfren Telecom
The main advantage of trading using opposite PT Data and Smartfren Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Data position performs unexpectedly, Smartfren Telecom 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 Smartfren Telecom will offset losses from the drop in Smartfren Telecom's long position.| PT Data vs. Trinitan Metals and | PT Data vs. Indosterling Technomedia Tbk | PT Data vs. Ciptadana Asset Management | PT Data vs. Dharma Polimetal Tbk |
| Smartfren Telecom vs. Indosat Tbk | Smartfren Telecom vs. XL Axiata Tbk | Smartfren Telecom vs. Energi Mega Persada | Smartfren Telecom vs. Bakrie Brothers Tbk |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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