Correlation Between Panorama Sentrawisata and Ramayana Lestari
Can any of the company-specific risk be diversified away by investing in both Panorama Sentrawisata and Ramayana Lestari 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 Ramayana Lestari 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 Ramayana Lestari Sentosa, you can compare the effects of market volatilities on Panorama Sentrawisata and Ramayana Lestari 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 Ramayana Lestari. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panorama Sentrawisata and Ramayana Lestari.
Diversification Opportunities for Panorama Sentrawisata and Ramayana Lestari
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panorama and Ramayana is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Panorama Sentrawisata Tbk and Ramayana Lestari Sentosa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramayana Lestari Sentosa 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 Ramayana Lestari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramayana Lestari Sentosa has no effect on the direction of Panorama Sentrawisata i.e., Panorama Sentrawisata and Ramayana Lestari go up and down completely randomly.
Pair Corralation between Panorama Sentrawisata and Ramayana Lestari
Assuming the 90 days trading horizon Panorama Sentrawisata Tbk is expected to generate 0.72 times more return on investment than Ramayana Lestari. However, Panorama Sentrawisata Tbk is 1.39 times less risky than Ramayana Lestari. It trades about 0.08 of its potential returns per unit of risk. Ramayana Lestari Sentosa is currently generating about -0.05 per unit of risk. If you would invest 45,800 in Panorama Sentrawisata Tbk on September 1, 2024 and sell it today you would earn a total of 8,200 from holding Panorama Sentrawisata Tbk or generate 17.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.44% |
| Values | Daily Returns |
Panorama Sentrawisata Tbk vs. Ramayana Lestari Sentosa
Performance |
| Timeline |
| Panorama Sentrawisata Tbk |
| Ramayana Lestari Sentosa |
Panorama Sentrawisata and Ramayana Lestari Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panorama Sentrawisata and Ramayana Lestari
The main advantage of trading using opposite Panorama Sentrawisata and Ramayana Lestari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panorama Sentrawisata position performs unexpectedly, Ramayana Lestari 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 Ramayana Lestari will offset losses from the drop in Ramayana Lestari'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 |
| Ramayana Lestari vs. Mitra Adiperkasa Tbk | Ramayana Lestari vs. Matahari Putra Prima | Ramayana Lestari vs. Summarecon Agung Tbk | Ramayana Lestari vs. Ciputra Development Tbk |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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