Correlation Between Panca Budi and Satyamitra Kemas
Can any of the company-specific risk be diversified away by investing in both Panca Budi and Satyamitra Kemas 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 Panca Budi and Satyamitra Kemas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panca Budi Idaman and Satyamitra Kemas Lestari, you can compare the effects of market volatilities on Panca Budi and Satyamitra Kemas 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 Panca Budi with a short position of Satyamitra Kemas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panca Budi and Satyamitra Kemas.
Diversification Opportunities for Panca Budi and Satyamitra Kemas
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panca and Satyamitra is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Panca Budi Idaman and Satyamitra Kemas Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satyamitra Kemas Lestari and Panca Budi 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 Panca Budi Idaman are associated (or correlated) with Satyamitra Kemas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satyamitra Kemas Lestari has no effect on the direction of Panca Budi i.e., Panca Budi and Satyamitra Kemas go up and down completely randomly.
Pair Corralation between Panca Budi and Satyamitra Kemas
Assuming the 90 days trading horizon Panca Budi is expected to generate 10.02 times less return on investment than Satyamitra Kemas. But when comparing it to its historical volatility, Panca Budi Idaman is 8.94 times less risky than Satyamitra Kemas. It trades about 0.05 of its potential returns per unit of risk. Satyamitra Kemas Lestari is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 16,800 in Satyamitra Kemas Lestari on November 2, 2024 and sell it today you would earn a total of 700.00 from holding Satyamitra Kemas Lestari or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panca Budi Idaman vs. Satyamitra Kemas Lestari
Performance |
| Timeline |
| Panca Budi Idaman |
| Satyamitra Kemas Lestari |
Panca Budi and Satyamitra Kemas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panca Budi and Satyamitra Kemas
The main advantage of trading using opposite Panca Budi and Satyamitra Kemas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panca Budi position performs unexpectedly, Satyamitra Kemas 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 Satyamitra Kemas will offset losses from the drop in Satyamitra Kemas' long position.| Panca Budi vs. Mitrabara Adiperdana PT | Panca Budi vs. Mark Dynamics Indonesia | Panca Budi vs. Prodia Widyahusada Tbk | Panca Budi vs. Selamat Sempurna Tbk |
| Satyamitra Kemas vs. Saraswanti Anugerah Makmur | Satyamitra Kemas vs. Panca Budi Idaman | Satyamitra Kemas vs. Indonesia Fibreboard Industry | Satyamitra Kemas vs. Kencana Energi Lestari |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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