Correlation Between Sinergi Inti and Panca Budi
Can any of the company-specific risk be diversified away by investing in both Sinergi Inti and Panca Budi 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 Panca Budi 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 Panca Budi Idaman, you can compare the effects of market volatilities on Sinergi Inti and Panca Budi 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 Panca Budi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinergi Inti and Panca Budi.
Diversification Opportunities for Sinergi Inti and Panca Budi
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sinergi and Panca is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sinergi Inti Plastindo and Panca Budi Idaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panca Budi Idaman 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 Panca Budi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panca Budi Idaman has no effect on the direction of Sinergi Inti i.e., Sinergi Inti and Panca Budi go up and down completely randomly.
Pair Corralation between Sinergi Inti and Panca Budi
Assuming the 90 days trading horizon Sinergi Inti Plastindo is expected to under-perform the Panca Budi. In addition to that, Sinergi Inti is 1.39 times more volatile than Panca Budi Idaman. It trades about -0.06 of its total potential returns per unit of risk. Panca Budi Idaman is currently generating about -0.04 per unit of volatility. If you would invest 56,000 in Panca Budi Idaman on September 14, 2024 and sell it today you would lose (1,000.00) from holding Panca Budi Idaman or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinergi Inti Plastindo vs. Panca Budi Idaman
Performance |
| Timeline |
| Sinergi Inti Plastindo |
| Panca Budi Idaman |
Sinergi Inti and Panca Budi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinergi Inti and Panca Budi
The main advantage of trading using opposite Sinergi Inti and Panca Budi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinergi Inti position performs unexpectedly, Panca Budi 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 Panca Budi will offset losses from the drop in Panca Budi'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 |
| Panca Budi vs. Kedaung Indah Can | Panca Budi vs. Kabelindo Murni Tbk | Panca Budi vs. Champion Pacific Indonesia | Panca Budi vs. Bhuwanatala Indah Permai |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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