Correlation Between Sentra Food and Pt Pakuan
Can any of the company-specific risk be diversified away by investing in both Sentra Food and Pt Pakuan 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 Pakuan 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 Pakuan Tbk, you can compare the effects of market volatilities on Sentra Food and Pt Pakuan 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 Pakuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentra Food and Pt Pakuan.
Diversification Opportunities for Sentra Food and Pt Pakuan
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sentra and UANG is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sentra Food Indonesia and Pt Pakuan Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pakuan Tbk 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 Pakuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pakuan Tbk has no effect on the direction of Sentra Food i.e., Sentra Food and Pt Pakuan go up and down completely randomly.
Pair Corralation between Sentra Food and Pt Pakuan
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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentra Food Indonesia vs. Pt Pakuan Tbk
Performance |
| Timeline |
| Sentra Food Indonesia |
| Pt Pakuan Tbk |
Sentra Food and Pt Pakuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentra Food and Pt Pakuan
The main advantage of trading using opposite Sentra Food and Pt Pakuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentra Food position performs unexpectedly, Pt Pakuan 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 Pakuan will offset losses from the drop in Pt Pakuan'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 Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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