Correlation Between Panorama Sentrawisata and Sona Topas
Can any of the company-specific risk be diversified away by investing in both Panorama Sentrawisata and Sona Topas 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 Sona Topas 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 Sona Topas Tourism, you can compare the effects of market volatilities on Panorama Sentrawisata and Sona Topas 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 Sona Topas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panorama Sentrawisata and Sona Topas.
Diversification Opportunities for Panorama Sentrawisata and Sona Topas
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panorama and Sona is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Panorama Sentrawisata Tbk and Sona Topas Tourism in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sona Topas Tourism 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 Sona Topas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sona Topas Tourism has no effect on the direction of Panorama Sentrawisata i.e., Panorama Sentrawisata and Sona Topas go up and down completely randomly.
Pair Corralation between Panorama Sentrawisata and Sona Topas
Assuming the 90 days trading horizon Panorama Sentrawisata is expected to generate 12.0 times less return on investment than Sona Topas. But when comparing it to its historical volatility, Panorama Sentrawisata Tbk is 12.86 times less risky than Sona Topas. It trades about 0.05 of its potential returns per unit of risk. Sona Topas Tourism is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 182,500 in Sona Topas Tourism on November 2, 2024 and sell it today you would earn a total of 132,500 from holding Sona Topas Tourism or generate 72.6% 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. Sona Topas Tourism
Performance |
| Timeline |
| Panorama Sentrawisata Tbk |
| Sona Topas Tourism |
Panorama Sentrawisata and Sona Topas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panorama Sentrawisata and Sona Topas
The main advantage of trading using opposite Panorama Sentrawisata and Sona Topas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panorama Sentrawisata position performs unexpectedly, Sona Topas 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 Sona Topas will offset losses from the drop in Sona Topas' 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 |
| Sona Topas vs. Lippo General Insurance | Sona Topas vs. Equity Development Investment | Sona Topas vs. Indointernet Tbk PT | Sona Topas vs. Ciptadana Asset Management |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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