Correlation Between Ever Shine and Sejahtera Bintang
Can any of the company-specific risk be diversified away by investing in both Ever Shine and Sejahtera Bintang 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 Ever Shine and Sejahtera Bintang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ever Shine Textile and Sejahtera Bintang Abadi, you can compare the effects of market volatilities on Ever Shine and Sejahtera Bintang 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 Ever Shine with a short position of Sejahtera Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ever Shine and Sejahtera Bintang.
Diversification Opportunities for Ever Shine and Sejahtera Bintang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ever and Sejahtera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ever Shine Textile and Sejahtera Bintang Abadi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahtera Bintang Abadi and Ever Shine 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 Ever Shine Textile are associated (or correlated) with Sejahtera Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejahtera Bintang Abadi has no effect on the direction of Ever Shine i.e., Ever Shine and Sejahtera Bintang go up and down completely randomly.
Pair Corralation between Ever Shine and Sejahtera Bintang
Assuming the 90 days trading horizon Ever Shine Textile is expected to under-perform the Sejahtera Bintang. But the stock apears to be less risky and, when comparing its historical volatility, Ever Shine Textile is 7.41 times less risky than Sejahtera Bintang. The stock trades about -0.01 of its potential returns per unit of risk. The Sejahtera Bintang Abadi is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Sejahtera Bintang Abadi on September 3, 2024 and sell it today you would lose (4,900) from holding Sejahtera Bintang Abadi or give up 98.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Ever Shine Textile vs. Sejahtera Bintang Abadi
Performance |
| Timeline |
| Ever Shine Textile |
| Sejahtera Bintang Abadi |
Ever Shine and Sejahtera Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ever Shine and Sejahtera Bintang
The main advantage of trading using opposite Ever Shine and Sejahtera Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ever Shine position performs unexpectedly, Sejahtera Bintang 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 Sejahtera Bintang will offset losses from the drop in Sejahtera Bintang's long position.| Ever Shine vs. Mitra Pinasthika Mustika | Ever Shine vs. Jakarta Int Hotels | Ever Shine vs. Asuransi Harta Aman | Ever Shine vs. Indosterling Technomedia Tbk |
| Sejahtera Bintang vs. Putra Rajawali Kencana | Sejahtera Bintang vs. Karya Bersama Anugerah | Sejahtera Bintang vs. Era Mandiri Cemerlang | Sejahtera Bintang vs. Terregra Asia Energy |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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