Correlation Between Leyand International and Sumber Tani
Can any of the company-specific risk be diversified away by investing in both Leyand International and Sumber Tani 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 Leyand International and Sumber Tani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leyand International Tbk and Sumber Tani Agung, you can compare the effects of market volatilities on Leyand International and Sumber Tani 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 Leyand International with a short position of Sumber Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyand International and Sumber Tani.
Diversification Opportunities for Leyand International and Sumber Tani
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Leyand and Sumber is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Leyand International Tbk and Sumber Tani Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Tani Agung and Leyand International 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 Leyand International Tbk are associated (or correlated) with Sumber Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Tani Agung has no effect on the direction of Leyand International i.e., Leyand International and Sumber Tani go up and down completely randomly.
Pair Corralation between Leyand International and Sumber Tani
Assuming the 90 days trading horizon Leyand International Tbk is expected to generate 8.7 times more return on investment than Sumber Tani. However, Leyand International is 8.7 times more volatile than Sumber Tani Agung. It trades about 0.2 of its potential returns per unit of risk. Sumber Tani Agung is currently generating about 0.09 per unit of risk. If you would invest 1,800 in Leyand International Tbk on November 4, 2024 and sell it today you would earn a total of 400.00 from holding Leyand International Tbk or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyand International Tbk vs. Sumber Tani Agung
Performance |
| Timeline |
| Leyand International Tbk |
| Sumber Tani Agung |
Leyand International and Sumber Tani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyand International and Sumber Tani
The main advantage of trading using opposite Leyand International and Sumber Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyand International position performs unexpectedly, Sumber Tani 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 Sumber Tani will offset losses from the drop in Sumber Tani's long position.| Leyand International vs. Tera Data Indonusa | Leyand International vs. Indorama Synthetics Tbk | Leyand International vs. Trinitan Metals and | Leyand International vs. Metrodata Electronics Tbk |
| Sumber Tani vs. Triputra Agro Persada | Sumber Tani vs. Dayamitra Telekomunikasi PT | Sumber Tani vs. RMK Energy PT | Sumber Tani vs. Dharma Satya Nusantara |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |