Correlation Between Sanurhasta Mitra and Hotel Fitra
Can any of the company-specific risk be diversified away by investing in both Sanurhasta Mitra and Hotel Fitra 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 Sanurhasta Mitra and Hotel Fitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanurhasta Mitra PT and Hotel Fitra International, you can compare the effects of market volatilities on Sanurhasta Mitra and Hotel Fitra 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 Sanurhasta Mitra with a short position of Hotel Fitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanurhasta Mitra and Hotel Fitra.
Diversification Opportunities for Sanurhasta Mitra and Hotel Fitra
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sanurhasta and Hotel is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sanurhasta Mitra PT and Hotel Fitra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Fitra International and Sanurhasta 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 Sanurhasta Mitra PT are associated (or correlated) with Hotel Fitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Fitra International has no effect on the direction of Sanurhasta Mitra i.e., Sanurhasta Mitra and Hotel Fitra go up and down completely randomly.
Pair Corralation between Sanurhasta Mitra and Hotel Fitra
Assuming the 90 days trading horizon Sanurhasta Mitra PT is expected to generate 4.84 times more return on investment than Hotel Fitra. However, Sanurhasta Mitra is 4.84 times more volatile than Hotel Fitra International. It trades about 0.59 of its potential returns per unit of risk. Hotel Fitra International is currently generating about 0.26 per unit of risk. If you would invest 7,900 in Sanurhasta Mitra PT on November 27, 2024 and sell it today you would earn a total of 5,500 from holding Sanurhasta Mitra PT or generate 69.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanurhasta Mitra PT vs. Hotel Fitra International
Performance |
| Timeline |
| Sanurhasta Mitra |
| Hotel Fitra International |
Sanurhasta Mitra and Hotel Fitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanurhasta Mitra and Hotel Fitra
The main advantage of trading using opposite Sanurhasta Mitra and Hotel Fitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanurhasta Mitra position performs unexpectedly, Hotel Fitra 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 Hotel Fitra will offset losses from the drop in Hotel Fitra's long position.| Sanurhasta Mitra vs. Galva Technologies Tbk | Sanurhasta Mitra vs. Dharma Polimetal Tbk | Sanurhasta Mitra vs. Kedawung Setia Industrial | Sanurhasta Mitra vs. HK Metals Utama |
| Hotel Fitra vs. Eastparc Hotel Tbk | Hotel Fitra vs. Menteng Heritage Realty | Hotel Fitra vs. Sanurhasta Mitra PT | Hotel Fitra vs. Sentra Food 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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