Correlation Between Panorama Sentrawisata and Hotel Sahid
Can any of the company-specific risk be diversified away by investing in both Panorama Sentrawisata and Hotel Sahid 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 Hotel Sahid 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 Hotel Sahid Jaya, you can compare the effects of market volatilities on Panorama Sentrawisata and Hotel Sahid 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 Hotel Sahid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panorama Sentrawisata and Hotel Sahid.
Diversification Opportunities for Panorama Sentrawisata and Hotel Sahid
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panorama and Hotel is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Panorama Sentrawisata Tbk and Hotel Sahid Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sahid Jaya 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 Hotel Sahid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sahid Jaya has no effect on the direction of Panorama Sentrawisata i.e., Panorama Sentrawisata and Hotel Sahid go up and down completely randomly.
Pair Corralation between Panorama Sentrawisata and Hotel Sahid
Assuming the 90 days trading horizon Panorama Sentrawisata Tbk is expected to generate 0.26 times more return on investment than Hotel Sahid. However, Panorama Sentrawisata Tbk is 3.8 times less risky than Hotel Sahid. It trades about 0.06 of its potential returns per unit of risk. Hotel Sahid Jaya is currently generating about -0.16 per unit of risk. If you would invest 52,000 in Panorama Sentrawisata Tbk on August 31, 2024 and sell it today you would earn a total of 500.00 from holding Panorama Sentrawisata Tbk or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panorama Sentrawisata Tbk vs. Hotel Sahid Jaya
Performance |
| Timeline |
| Panorama Sentrawisata Tbk |
| Hotel Sahid Jaya |
Panorama Sentrawisata and Hotel Sahid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panorama Sentrawisata and Hotel Sahid
The main advantage of trading using opposite Panorama Sentrawisata and Hotel Sahid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panorama Sentrawisata position performs unexpectedly, Hotel Sahid 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 Hotel Sahid will offset losses from the drop in Hotel Sahid's long position.| Panorama Sentrawisata vs. Japfa Comfeed Indonesia | Panorama Sentrawisata vs. Charoen Pokphand Indonesia | Panorama Sentrawisata vs. Erajaya Swasembada Tbk | Panorama Sentrawisata vs. Indofood Cbp Sukses |
| Hotel Sahid vs. Japfa Comfeed Indonesia | Hotel Sahid vs. Charoen Pokphand Indonesia | Hotel Sahid vs. Erajaya Swasembada Tbk | Hotel Sahid 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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