Correlation Between Sentral Mitra and Nusantara Almazia
Can any of the company-specific risk be diversified away by investing in both Sentral Mitra and Nusantara Almazia 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 Sentral Mitra and Nusantara Almazia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentral Mitra Informatika and Nusantara Almazia, you can compare the effects of market volatilities on Sentral Mitra and Nusantara Almazia 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 Sentral Mitra with a short position of Nusantara Almazia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentral Mitra and Nusantara Almazia.
Diversification Opportunities for Sentral Mitra and Nusantara Almazia
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sentral and Nusantara is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sentral Mitra Informatika and Nusantara Almazia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusantara Almazia and Sentral Mitra 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 Sentral Mitra Informatika are associated (or correlated) with Nusantara Almazia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusantara Almazia has no effect on the direction of Sentral Mitra i.e., Sentral Mitra and Nusantara Almazia go up and down completely randomly.
Pair Corralation between Sentral Mitra and Nusantara Almazia
Assuming the 90 days trading horizon Sentral Mitra Informatika is expected to generate 0.69 times more return on investment than Nusantara Almazia. However, Sentral Mitra Informatika is 1.45 times less risky than Nusantara Almazia. It trades about -0.02 of its potential returns per unit of risk. Nusantara Almazia is currently generating about -0.04 per unit of risk. If you would invest 9,700 in Sentral Mitra Informatika on August 31, 2024 and sell it today you would lose (3,200) from holding Sentral Mitra Informatika or give up 32.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Sentral Mitra Informatika vs. Nusantara Almazia
Performance |
| Timeline |
| Sentral Mitra Informatika |
| Nusantara Almazia |
Sentral Mitra and Nusantara Almazia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentral Mitra and Nusantara Almazia
The main advantage of trading using opposite Sentral Mitra and Nusantara Almazia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentral Mitra position performs unexpectedly, Nusantara Almazia 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 Nusantara Almazia will offset losses from the drop in Nusantara Almazia's long position.| Sentral Mitra vs. PT Dewi Shri | Sentral Mitra vs. Habco Trans Maritima | Sentral Mitra vs. PT Jhonlin Agro | Sentral Mitra vs. Autopedia Sukses Lestari |
| Nusantara Almazia vs. Bima Sakti Pertiwi | Nusantara Almazia vs. DMS Propertindo Tbk | Nusantara Almazia vs. Repower Asia Indonesia | Nusantara Almazia vs. Pollux Properti Indonesia |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |