Correlation Between Kalbe Farma and PT Sreeya
Can any of the company-specific risk be diversified away by investing in both Kalbe Farma and PT Sreeya 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 Kalbe Farma and PT Sreeya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kalbe Farma Tbk and PT Sreeya Sewu, you can compare the effects of market volatilities on Kalbe Farma and PT Sreeya 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 Kalbe Farma with a short position of PT Sreeya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kalbe Farma and PT Sreeya.
Diversification Opportunities for Kalbe Farma and PT Sreeya
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kalbe and SIPD is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kalbe Farma Tbk and PT Sreeya Sewu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sreeya Sewu and Kalbe Farma 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 Kalbe Farma Tbk are associated (or correlated) with PT Sreeya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sreeya Sewu has no effect on the direction of Kalbe Farma i.e., Kalbe Farma and PT Sreeya go up and down completely randomly.
Pair Corralation between Kalbe Farma and PT Sreeya
Assuming the 90 days trading horizon Kalbe Farma Tbk is expected to under-perform the PT Sreeya. But the stock apears to be less risky and, when comparing its historical volatility, Kalbe Farma Tbk is 2.51 times less risky than PT Sreeya. The stock trades about -0.21 of its potential returns per unit of risk. The PT Sreeya Sewu is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 87,500 in PT Sreeya Sewu on August 30, 2024 and sell it today you would lose (3,000) from holding PT Sreeya Sewu or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kalbe Farma Tbk vs. PT Sreeya Sewu
Performance |
| Timeline |
| Kalbe Farma Tbk |
| PT Sreeya Sewu |
Kalbe Farma and PT Sreeya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kalbe Farma and PT Sreeya
The main advantage of trading using opposite Kalbe Farma and PT Sreeya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kalbe Farma position performs unexpectedly, PT Sreeya 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 Sreeya will offset losses from the drop in PT Sreeya's long position.| Kalbe Farma vs. Merdeka Copper Gold | Kalbe Farma vs. Tower Bersama Infrastructure | Kalbe Farma vs. Erajaya Swasembada Tbk | Kalbe Farma vs. Surya Citra Media |
| PT Sreeya vs. Central Proteina Prima | PT Sreeya vs. Kawasan Industri Jababeka | PT Sreeya vs. Tunas Baru Lampung | PT Sreeya vs. Slj Global 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 Directory module to find actively traded commodities issued by global exchanges.
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