Correlation Between Royalindo Investa and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Royalindo Investa and PT Sunter 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 Royalindo Investa and PT Sunter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Royalindo Investa Wijaya and PT Sunter Lakeside, you can compare the effects of market volatilities on Royalindo Investa and PT Sunter 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 Royalindo Investa with a short position of PT Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royalindo Investa and PT Sunter.
Diversification Opportunities for Royalindo Investa and PT Sunter
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Royalindo and SNLK is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Royalindo Investa Wijaya and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside and Royalindo Investa 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 Royalindo Investa Wijaya are associated (or correlated) with PT Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Royalindo Investa i.e., Royalindo Investa and PT Sunter go up and down completely randomly.
Pair Corralation between Royalindo Investa and PT Sunter
Assuming the 90 days trading horizon Royalindo Investa Wijaya is expected to generate 2.47 times more return on investment than PT Sunter. However, Royalindo Investa is 2.47 times more volatile than PT Sunter Lakeside. It trades about 0.14 of its potential returns per unit of risk. PT Sunter Lakeside is currently generating about 0.21 per unit of risk. If you would invest 11,400 in Royalindo Investa Wijaya on November 18, 2024 and sell it today you would earn a total of 2,200 from holding Royalindo Investa Wijaya or generate 19.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Royalindo Investa Wijaya vs. PT Sunter Lakeside
Performance |
| Timeline |
| Royalindo Investa Wijaya |
| PT Sunter Lakeside |
Royalindo Investa and PT Sunter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Royalindo Investa and PT Sunter
The main advantage of trading using opposite Royalindo Investa and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Royalindo Investa position performs unexpectedly, PT Sunter 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 Sunter will offset losses from the drop in PT Sunter's long position.| Royalindo Investa vs. Surya Permata Andalan | Royalindo Investa vs. Hotel Sahid Jaya | Royalindo Investa vs. Citra Putra Realty | Royalindo Investa vs. Arthavest Tbk |
| PT Sunter vs. Gaya Abadi Sempurna | PT Sunter vs. Damai Sejahtera Abadi | PT Sunter vs. Red Planet Indonesia | PT Sunter vs. PAM Mineral 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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