Correlation Between Sinergi Inti and Sunindo Adipersada
Can any of the company-specific risk be diversified away by investing in both Sinergi Inti and Sunindo Adipersada 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 Sunindo Adipersada 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 Sunindo Adipersada Tbk, you can compare the effects of market volatilities on Sinergi Inti and Sunindo Adipersada 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 Sunindo Adipersada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinergi Inti and Sunindo Adipersada.
Diversification Opportunities for Sinergi Inti and Sunindo Adipersada
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sinergi and Sunindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sinergi Inti Plastindo and Sunindo Adipersada Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunindo Adipersada Tbk 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 Sunindo Adipersada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunindo Adipersada Tbk has no effect on the direction of Sinergi Inti i.e., Sinergi Inti and Sunindo Adipersada go up and down completely randomly.
Pair Corralation between Sinergi Inti and Sunindo Adipersada
Assuming the 90 days trading horizon Sinergi Inti Plastindo is expected to generate 0.74 times more return on investment than Sunindo Adipersada. However, Sinergi Inti Plastindo is 1.36 times less risky than Sunindo Adipersada. It trades about 0.06 of its potential returns per unit of risk. Sunindo Adipersada Tbk is currently generating about -0.05 per unit of risk. If you would invest 1,800 in Sinergi Inti Plastindo on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Sinergi Inti Plastindo or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinergi Inti Plastindo vs. Sunindo Adipersada Tbk
Performance |
| Timeline |
| Sinergi Inti Plastindo |
| Sunindo Adipersada Tbk |
Sinergi Inti and Sunindo Adipersada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinergi Inti and Sunindo Adipersada
The main advantage of trading using opposite Sinergi Inti and Sunindo Adipersada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinergi Inti position performs unexpectedly, Sunindo Adipersada 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 Sunindo Adipersada will offset losses from the drop in Sunindo Adipersada'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 |
| Sunindo Adipersada vs. Guna Timur Raya | Sunindo Adipersada vs. Yelooo Integra Datanet | Sunindo Adipersada vs. Agro Yasa Lestari | Sunindo Adipersada vs. Sinergi Inti Plastindo |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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