Correlation Between Nusa Palapa and Saraswanti Anugerah
Can any of the company-specific risk be diversified away by investing in both Nusa Palapa and Saraswanti Anugerah 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 Nusa Palapa and Saraswanti Anugerah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nusa Palapa Gemilang and Saraswanti Anugerah Makmur, you can compare the effects of market volatilities on Nusa Palapa and Saraswanti Anugerah 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 Nusa Palapa with a short position of Saraswanti Anugerah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nusa Palapa and Saraswanti Anugerah.
Diversification Opportunities for Nusa Palapa and Saraswanti Anugerah
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nusa and Saraswanti is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Nusa Palapa Gemilang and Saraswanti Anugerah Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saraswanti Anugerah and Nusa Palapa 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 Nusa Palapa Gemilang are associated (or correlated) with Saraswanti Anugerah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saraswanti Anugerah has no effect on the direction of Nusa Palapa i.e., Nusa Palapa and Saraswanti Anugerah go up and down completely randomly.
Pair Corralation between Nusa Palapa and Saraswanti Anugerah
Assuming the 90 days trading horizon Nusa Palapa Gemilang is expected to under-perform the Saraswanti Anugerah. In addition to that, Nusa Palapa is 3.93 times more volatile than Saraswanti Anugerah Makmur. It trades about -0.04 of its total potential returns per unit of risk. Saraswanti Anugerah Makmur is currently generating about -0.14 per unit of volatility. If you would invest 80,000 in Saraswanti Anugerah Makmur on August 29, 2024 and sell it today you would lose (5,000) from holding Saraswanti Anugerah Makmur or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Nusa Palapa Gemilang vs. Saraswanti Anugerah Makmur
Performance |
| Timeline |
| Nusa Palapa Gemilang |
| Saraswanti Anugerah |
Nusa Palapa and Saraswanti Anugerah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nusa Palapa and Saraswanti Anugerah
The main advantage of trading using opposite Nusa Palapa and Saraswanti Anugerah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nusa Palapa position performs unexpectedly, Saraswanti Anugerah 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 Saraswanti Anugerah will offset losses from the drop in Saraswanti Anugerah's long position.| Nusa Palapa vs. Saraswanti Anugerah Makmur | Nusa Palapa vs. Berkah Beton Sadaya | Nusa Palapa vs. Triputra Agro Persada | Nusa Palapa vs. PT Sunter Lakeside |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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