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
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panca and Satyamitra is -0.73. 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 Idaman is expected to generate 1.49 times more return on investment than Satyamitra Kemas. However, Panca Budi is 1.49 times more volatile than Satyamitra Kemas Lestari. It trades about 0.13 of its potential returns per unit of risk. Satyamitra Kemas Lestari is currently generating about -0.08 per unit of risk. If you would invest 31,740 in Panca Budi Idaman on September 14, 2024 and sell it today you would earn a total of 23,260 from holding Panca Budi Idaman or generate 73.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| 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. Kedaung Indah Can | Panca Budi vs. Kabelindo Murni Tbk | Panca Budi vs. Champion Pacific Indonesia | Panca Budi vs. Bhuwanatala Indah Permai |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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