Correlation Between Karya Bersama and Sinergi Inti
Can any of the company-specific risk be diversified away by investing in both Karya Bersama and Sinergi Inti 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 Karya Bersama and Sinergi Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karya Bersama Anugerah and Sinergi Inti Plastindo, you can compare the effects of market volatilities on Karya Bersama and Sinergi Inti 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 Karya Bersama with a short position of Sinergi Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karya Bersama and Sinergi Inti.
Diversification Opportunities for Karya Bersama and Sinergi Inti
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Karya and Sinergi is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Karya Bersama Anugerah and Sinergi Inti Plastindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinergi Inti Plastindo and Karya Bersama 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 Karya Bersama Anugerah are associated (or correlated) with Sinergi Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinergi Inti Plastindo has no effect on the direction of Karya Bersama i.e., Karya Bersama and Sinergi Inti go up and down completely randomly.
Pair Corralation between Karya Bersama and Sinergi Inti
Assuming the 90 days trading horizon Karya Bersama Anugerah is expected to generate 1.3 times more return on investment than Sinergi Inti. However, Karya Bersama is 1.3 times more volatile than Sinergi Inti Plastindo. It trades about 0.02 of its potential returns per unit of risk. Sinergi Inti Plastindo is currently generating about -0.32 per unit of risk. If you would invest 1,900 in Karya Bersama Anugerah on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Karya Bersama Anugerah or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karya Bersama Anugerah vs. Sinergi Inti Plastindo
Performance |
| Timeline |
| Karya Bersama Anugerah |
| Sinergi Inti Plastindo |
Karya Bersama and Sinergi Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karya Bersama and Sinergi Inti
The main advantage of trading using opposite Karya Bersama and Sinergi Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karya Bersama position performs unexpectedly, Sinergi Inti 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 Sinergi Inti will offset losses from the drop in Sinergi Inti's long position.| Karya Bersama vs. Putra Rajawali Kencana | Karya Bersama vs. Repower Asia Indonesia | Karya Bersama vs. DMS Propertindo Tbk | Karya Bersama vs. Perintis Triniti Properti |
| Sinergi Inti vs. Lotte Chemical Titan | Sinergi Inti vs. Agro Yasa Lestari | Sinergi Inti vs. Era Mandiri Cemerlang | Sinergi Inti vs. Jasnita Telekomindo 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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