Correlation Between Sinergi Inti and Era Mandiri
Can any of the company-specific risk be diversified away by investing in both Sinergi Inti 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 Sinergi Inti and Era Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinergi Inti Plastindo and Era Mandiri Cemerlang, you can compare the effects of market volatilities on Sinergi Inti 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 Sinergi Inti with a short position of Era Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinergi Inti and Era Mandiri.
Diversification Opportunities for Sinergi Inti and Era Mandiri
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinergi and Era is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sinergi Inti Plastindo 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 Sinergi Inti 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 Sinergi Inti Plastindo 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 Sinergi Inti i.e., Sinergi Inti and Era Mandiri go up and down completely randomly.
Pair Corralation between Sinergi Inti and Era Mandiri
Assuming the 90 days trading horizon Sinergi Inti Plastindo is expected to under-perform the Era Mandiri. But the stock apears to be less risky and, when comparing its historical volatility, Sinergi Inti Plastindo is 1.05 times less risky than Era Mandiri. The stock trades about -0.28 of its potential returns per unit of risk. The Era Mandiri Cemerlang is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 3,400 in Era Mandiri Cemerlang on August 29, 2024 and sell it today you would lose (700.00) from holding Era Mandiri Cemerlang or give up 20.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinergi Inti Plastindo vs. Era Mandiri Cemerlang
Performance |
| Timeline |
| Sinergi Inti Plastindo |
| Era Mandiri Cemerlang |
Sinergi Inti and Era Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinergi Inti and Era Mandiri
The main advantage of trading using opposite Sinergi Inti and Era Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinergi Inti 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.| Sinergi Inti vs. Lotte Chemical Titan | Sinergi Inti vs. Agro Yasa Lestari | Sinergi Inti vs. Era Mandiri Cemerlang | Sinergi Inti vs. Jasnita Telekomindo Tbk |
| Era Mandiri vs. Putra Rajawali Kencana | Era Mandiri vs. Sinergi Inti Plastindo | Era Mandiri vs. Karya Bersama Anugerah | Era Mandiri vs. Jasnita Telekomindo 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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