Correlation Between Hero Supermarket and Sri Rejeki
Can any of the company-specific risk be diversified away by investing in both Hero Supermarket and Sri Rejeki 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 Hero Supermarket and Sri Rejeki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hero Supermarket Tbk and Sri Rejeki IsmanPT, you can compare the effects of market volatilities on Hero Supermarket and Sri Rejeki 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 Hero Supermarket with a short position of Sri Rejeki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hero Supermarket and Sri Rejeki.
Diversification Opportunities for Hero Supermarket and Sri Rejeki
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hero and Sri is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hero Supermarket Tbk and Sri Rejeki IsmanPT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sri Rejeki IsmanPT and Hero Supermarket 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 Hero Supermarket Tbk are associated (or correlated) with Sri Rejeki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sri Rejeki IsmanPT has no effect on the direction of Hero Supermarket i.e., Hero Supermarket and Sri Rejeki go up and down completely randomly.
Pair Corralation between Hero Supermarket and Sri Rejeki
If you would invest 14,600 in Sri Rejeki IsmanPT on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Sri Rejeki IsmanPT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Hero Supermarket Tbk vs. Sri Rejeki IsmanPT
Performance |
| Timeline |
| Hero Supermarket Tbk |
| Sri Rejeki IsmanPT |
Hero Supermarket and Sri Rejeki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hero Supermarket and Sri Rejeki
The main advantage of trading using opposite Hero Supermarket and Sri Rejeki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hero Supermarket position performs unexpectedly, Sri Rejeki 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 Sri Rejeki will offset losses from the drop in Sri Rejeki's long position.| Hero Supermarket vs. Austindo Nusantara Jaya | Hero Supermarket vs. Garudafood Putra Putri | Hero Supermarket vs. Provident Agro Tbk | Hero Supermarket vs. Dharma Satya Nusantara |
| Sri Rejeki vs. Anabatic Technologies Tbk | Sri Rejeki vs. Trinitan Metals and | Sri Rejeki vs. Galva Technologies Tbk | Sri Rejeki vs. Eastparc Hotel Tbk |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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