Correlation Between Panorama Sentrawisata and Indorama Synthetics
Can any of the company-specific risk be diversified away by investing in both Panorama Sentrawisata and Indorama Synthetics 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 Panorama Sentrawisata and Indorama Synthetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panorama Sentrawisata Tbk and Indorama Synthetics Tbk, you can compare the effects of market volatilities on Panorama Sentrawisata and Indorama Synthetics 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 Panorama Sentrawisata with a short position of Indorama Synthetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panorama Sentrawisata and Indorama Synthetics.
Diversification Opportunities for Panorama Sentrawisata and Indorama Synthetics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panorama and Indorama is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Panorama Sentrawisata Tbk and Indorama Synthetics Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indorama Synthetics Tbk and Panorama Sentrawisata 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 Panorama Sentrawisata Tbk are associated (or correlated) with Indorama Synthetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indorama Synthetics Tbk has no effect on the direction of Panorama Sentrawisata i.e., Panorama Sentrawisata and Indorama Synthetics go up and down completely randomly.
Pair Corralation between Panorama Sentrawisata and Indorama Synthetics
Assuming the 90 days trading horizon Panorama Sentrawisata Tbk is expected to under-perform the Indorama Synthetics. But the stock apears to be less risky and, when comparing its historical volatility, Panorama Sentrawisata Tbk is 1.05 times less risky than Indorama Synthetics. The stock trades about -0.03 of its potential returns per unit of risk. The Indorama Synthetics Tbk is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 317,000 in Indorama Synthetics Tbk on September 1, 2024 and sell it today you would lose (40,000) from holding Indorama Synthetics Tbk or give up 12.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
Panorama Sentrawisata Tbk vs. Indorama Synthetics Tbk
Performance |
| Timeline |
| Panorama Sentrawisata Tbk |
| Indorama Synthetics Tbk |
Panorama Sentrawisata and Indorama Synthetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panorama Sentrawisata and Indorama Synthetics
The main advantage of trading using opposite Panorama Sentrawisata and Indorama Synthetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panorama Sentrawisata position performs unexpectedly, Indorama Synthetics 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 Indorama Synthetics will offset losses from the drop in Indorama Synthetics' long position.| Panorama Sentrawisata vs. Pembangunan Jaya Ancol | Panorama Sentrawisata vs. Hotel Sahid Jaya | Panorama Sentrawisata vs. Pudjiadi Sons Tbk | Panorama Sentrawisata vs. Pioneerindo Gourmet International |
| Indorama Synthetics vs. Japfa Comfeed Indonesia | Indorama Synthetics vs. Charoen Pokphand Indonesia | Indorama Synthetics vs. Erajaya Swasembada Tbk | Indorama Synthetics vs. Indofood Cbp Sukses |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |