Correlation Between Pudjiadi Sons and Sejahteraraya Anugrahjaya
Can any of the company-specific risk be diversified away by investing in both Pudjiadi Sons and Sejahteraraya Anugrahjaya 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 Pudjiadi Sons and Sejahteraraya Anugrahjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pudjiadi Sons Tbk and Sejahteraraya Anugrahjaya Tbk, you can compare the effects of market volatilities on Pudjiadi Sons and Sejahteraraya Anugrahjaya 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 Pudjiadi Sons with a short position of Sejahteraraya Anugrahjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pudjiadi Sons and Sejahteraraya Anugrahjaya.
Diversification Opportunities for Pudjiadi Sons and Sejahteraraya Anugrahjaya
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pudjiadi and Sejahteraraya is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pudjiadi Sons Tbk and Sejahteraraya Anugrahjaya Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahteraraya Anugrahjaya and Pudjiadi Sons 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 Pudjiadi Sons Tbk are associated (or correlated) with Sejahteraraya Anugrahjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejahteraraya Anugrahjaya has no effect on the direction of Pudjiadi Sons i.e., Pudjiadi Sons and Sejahteraraya Anugrahjaya go up and down completely randomly.
Pair Corralation between Pudjiadi Sons and Sejahteraraya Anugrahjaya
Assuming the 90 days trading horizon Pudjiadi Sons Tbk is expected to generate 3.73 times more return on investment than Sejahteraraya Anugrahjaya. However, Pudjiadi Sons is 3.73 times more volatile than Sejahteraraya Anugrahjaya Tbk. It trades about 0.18 of its potential returns per unit of risk. Sejahteraraya Anugrahjaya Tbk is currently generating about 0.21 per unit of risk. If you would invest 44,800 in Pudjiadi Sons Tbk on August 30, 2024 and sell it today you would earn a total of 91,200 from holding Pudjiadi Sons Tbk or generate 203.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pudjiadi Sons Tbk vs. Sejahteraraya Anugrahjaya Tbk
Performance |
| Timeline |
| Pudjiadi Sons Tbk |
| Sejahteraraya Anugrahjaya |
Pudjiadi Sons and Sejahteraraya Anugrahjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pudjiadi Sons and Sejahteraraya Anugrahjaya
The main advantage of trading using opposite Pudjiadi Sons and Sejahteraraya Anugrahjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pudjiadi Sons position performs unexpectedly, Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya will offset losses from the drop in Sejahteraraya Anugrahjaya's long position.| Pudjiadi Sons vs. HK Metals Utama | Pudjiadi Sons vs. Alumindo Light Metal | Pudjiadi Sons vs. PT Data Sinergitama | Pudjiadi Sons 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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