Correlation Between Sanurhasta Mitra and Emdeki Utama
Can any of the company-specific risk be diversified away by investing in both Sanurhasta Mitra and Emdeki Utama 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 Emdeki Utama 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 Emdeki Utama Tbk, you can compare the effects of market volatilities on Sanurhasta Mitra and Emdeki Utama 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 Emdeki Utama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanurhasta Mitra and Emdeki Utama.
Diversification Opportunities for Sanurhasta Mitra and Emdeki Utama
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sanurhasta and Emdeki is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sanurhasta Mitra PT and Emdeki Utama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdeki Utama Tbk 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 Emdeki Utama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdeki Utama Tbk has no effect on the direction of Sanurhasta Mitra i.e., Sanurhasta Mitra and Emdeki Utama go up and down completely randomly.
Pair Corralation between Sanurhasta Mitra and Emdeki Utama
Assuming the 90 days trading horizon Sanurhasta Mitra PT is expected to generate 5.66 times more return on investment than Emdeki Utama. However, Sanurhasta Mitra is 5.66 times more volatile than Emdeki Utama Tbk. It trades about 0.04 of its potential returns per unit of risk. Emdeki Utama Tbk is currently generating about -0.04 per unit of risk. If you would invest 5,000 in Sanurhasta Mitra PT on September 12, 2024 and sell it today you would earn a total of 1,200 from holding Sanurhasta Mitra PT or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanurhasta Mitra PT vs. Emdeki Utama Tbk
Performance |
| Timeline |
| Sanurhasta Mitra |
| Emdeki Utama Tbk |
Sanurhasta Mitra and Emdeki Utama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanurhasta Mitra and Emdeki Utama
The main advantage of trading using opposite Sanurhasta Mitra and Emdeki Utama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanurhasta Mitra position performs unexpectedly, Emdeki Utama 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 Emdeki Utama will offset losses from the drop in Emdeki Utama's long position.| Sanurhasta Mitra vs. Ciputra Development Tbk | Sanurhasta Mitra vs. Bumi Serpong Damai | Sanurhasta Mitra vs. Alam Sutera Realty | Sanurhasta Mitra vs. Lippo Karawaci Tbk |
| Emdeki Utama vs. Panca Budi Idaman | Emdeki Utama vs. Intanwijaya Internasional Tbk | Emdeki Utama vs. Hartadinata Abadi Tbk | Emdeki Utama vs. Unggul Indah Cahaya |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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