Correlation Between Era Mandiri and Sejahtera Bintang
Can any of the company-specific risk be diversified away by investing in both Era Mandiri 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 Era Mandiri and Sejahtera Bintang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Era Mandiri Cemerlang and Sejahtera Bintang Abadi, you can compare the effects of market volatilities on Era Mandiri 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 Era Mandiri with a short position of Sejahtera Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Era Mandiri and Sejahtera Bintang.
Diversification Opportunities for Era Mandiri and Sejahtera Bintang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Era and Sejahtera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Era Mandiri Cemerlang 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 Era Mandiri 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 Era Mandiri Cemerlang 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 Era Mandiri i.e., Era Mandiri and Sejahtera Bintang go up and down completely randomly.
Pair Corralation between Era Mandiri and Sejahtera Bintang
If you would invest 100.00 in Sejahtera Bintang Abadi on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Sejahtera Bintang Abadi or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Era Mandiri Cemerlang vs. Sejahtera Bintang Abadi
Performance |
| Timeline |
| Era Mandiri Cemerlang |
| Sejahtera Bintang Abadi |
Era Mandiri and Sejahtera Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Era Mandiri and Sejahtera Bintang
The main advantage of trading using opposite Era Mandiri and Sejahtera Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Era Mandiri 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.| Era Mandiri vs. Putra Rajawali Kencana | Era Mandiri vs. Sinergi Inti Plastindo | Era Mandiri vs. Karya Bersama Anugerah | Era Mandiri vs. Jasnita Telekomindo 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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