Correlation Between Sentra Food and PT Multi
Can any of the company-specific risk be diversified away by investing in both Sentra Food and PT Multi 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 Sentra Food and PT Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentra Food Indonesia and PT Multi Garam, you can compare the effects of market volatilities on Sentra Food and PT Multi 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 Sentra Food with a short position of PT Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentra Food and PT Multi.
Diversification Opportunities for Sentra Food and PT Multi
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sentra and FOLK is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sentra Food Indonesia and PT Multi Garam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Multi Garam and Sentra Food 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 Sentra Food Indonesia are associated (or correlated) with PT Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Multi Garam has no effect on the direction of Sentra Food i.e., Sentra Food and PT Multi go up and down completely randomly.
Pair Corralation between Sentra Food and PT Multi
If you would invest 11,600 in Sentra Food Indonesia on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Sentra Food Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentra Food Indonesia vs. PT Multi Garam
Performance |
| Timeline |
| Sentra Food Indonesia |
| PT Multi Garam |
Sentra Food and PT Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentra Food and PT Multi
The main advantage of trading using opposite Sentra Food and PT Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentra Food position performs unexpectedly, PT Multi 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 PT Multi will offset losses from the drop in PT Multi's long position.| Sentra Food vs. Garudafood Putra Putri | Sentra Food vs. Wijaya Karya Bangunan | Sentra Food vs. Mitrabara Adiperdana PT | Sentra Food vs. PT Multi Garam |
| PT Multi vs. Bank Central Asia | PT Multi vs. Bank Rakyat Indonesia | PT Multi vs. Bayan Resources Tbk | PT Multi vs. Bank Mandiri Persero |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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