Correlation Between Panorama Sentrawisata and Pembangunan Jaya
Can any of the company-specific risk be diversified away by investing in both Panorama Sentrawisata and Pembangunan Jaya 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 Pembangunan Jaya 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 Pembangunan Jaya Ancol, you can compare the effects of market volatilities on Panorama Sentrawisata and Pembangunan Jaya 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 Pembangunan Jaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panorama Sentrawisata and Pembangunan Jaya.
Diversification Opportunities for Panorama Sentrawisata and Pembangunan Jaya
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panorama and Pembangunan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Panorama Sentrawisata Tbk and Pembangunan Jaya Ancol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembangunan Jaya Ancol 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 Pembangunan Jaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembangunan Jaya Ancol has no effect on the direction of Panorama Sentrawisata i.e., Panorama Sentrawisata and Pembangunan Jaya go up and down completely randomly.
Pair Corralation between Panorama Sentrawisata and Pembangunan Jaya
Assuming the 90 days trading horizon Panorama Sentrawisata Tbk is expected to generate 1.32 times more return on investment than Pembangunan Jaya. However, Panorama Sentrawisata is 1.32 times more volatile than Pembangunan Jaya Ancol. It trades about 0.05 of its potential returns per unit of risk. Pembangunan Jaya Ancol is currently generating about 0.0 per unit of risk. If you would invest 48,800 in Panorama Sentrawisata Tbk on November 2, 2024 and sell it today you would earn a total of 30,700 from holding Panorama Sentrawisata Tbk or generate 62.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Panorama Sentrawisata Tbk vs. Pembangunan Jaya Ancol
Performance |
| Timeline |
| Panorama Sentrawisata Tbk |
| Pembangunan Jaya Ancol |
Panorama Sentrawisata and Pembangunan Jaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panorama Sentrawisata and Pembangunan Jaya
The main advantage of trading using opposite Panorama Sentrawisata and Pembangunan Jaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panorama Sentrawisata position performs unexpectedly, Pembangunan Jaya 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 Pembangunan Jaya will offset losses from the drop in Pembangunan Jaya's 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 |
| Pembangunan Jaya vs. Lautan Luas Tbk | Pembangunan Jaya vs. Panorama Sentrawisata Tbk | Pembangunan Jaya vs. Multi Indocitra Tbk | Pembangunan Jaya vs. Hotel Sahid Jaya |
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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