Correlation Between Menteng Heritage and Sejahtera Bintang
Can any of the company-specific risk be diversified away by investing in both Menteng Heritage 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 Menteng Heritage and Sejahtera Bintang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menteng Heritage Realty and Sejahtera Bintang Abadi, you can compare the effects of market volatilities on Menteng Heritage 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 Menteng Heritage with a short position of Sejahtera Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menteng Heritage and Sejahtera Bintang.
Diversification Opportunities for Menteng Heritage and Sejahtera Bintang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Menteng and Sejahtera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Menteng Heritage Realty 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 Menteng Heritage 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 Menteng Heritage Realty 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 Menteng Heritage i.e., Menteng Heritage and Sejahtera Bintang go up and down completely randomly.
Pair Corralation between Menteng Heritage and Sejahtera Bintang
Assuming the 90 days trading horizon Menteng Heritage is expected to generate 38.45 times less return on investment than Sejahtera Bintang. But when comparing it to its historical volatility, Menteng Heritage Realty is 6.39 times less risky than Sejahtera Bintang. It trades about 0.0 of its potential returns per unit of risk. 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 | 99.79% |
| Values | Daily Returns |
Menteng Heritage Realty vs. Sejahtera Bintang Abadi
Performance |
| Timeline |
| Menteng Heritage Realty |
| Sejahtera Bintang Abadi |
Menteng Heritage and Sejahtera Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menteng Heritage and Sejahtera Bintang
The main advantage of trading using opposite Menteng Heritage and Sejahtera Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menteng Heritage 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.| Menteng Heritage vs. Eastparc Hotel Tbk | Menteng Heritage vs. Jasnita Telekomindo Tbk | Menteng Heritage vs. Hotel Fitra International | Menteng Heritage vs. Borneo Olah Sarana |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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