Correlation Between Putra Rajawali and Sejahtera Bintang
Can any of the company-specific risk be diversified away by investing in both Putra Rajawali and Sejahtera Bintang 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 Putra Rajawali and Sejahtera Bintang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putra Rajawali Kencana and Sejahtera Bintang Abadi, you can compare the effects of market volatilities on Putra Rajawali and Sejahtera Bintang 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 Putra Rajawali with a short position of Sejahtera Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putra Rajawali and Sejahtera Bintang.
Diversification Opportunities for Putra Rajawali and Sejahtera Bintang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putra and Sejahtera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putra Rajawali Kencana and Sejahtera Bintang Abadi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahtera Bintang Abadi and Putra Rajawali 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 Putra Rajawali Kencana are associated (or correlated) with Sejahtera Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejahtera Bintang Abadi has no effect on the direction of Putra Rajawali i.e., Putra Rajawali and Sejahtera Bintang go up and down completely randomly.
Pair Corralation between Putra Rajawali and Sejahtera Bintang
Assuming the 90 days trading horizon Putra Rajawali Kencana is expected to under-perform the Sejahtera Bintang. But the stock apears to be less risky and, when comparing its historical volatility, Putra Rajawali Kencana is 4.54 times less risky than Sejahtera Bintang. The stock trades about -0.06 of its potential returns per unit of risk. The Sejahtera Bintang Abadi is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Sejahtera Bintang Abadi on September 4, 2024 and sell it today you would lose (4,900) from holding Sejahtera Bintang Abadi or give up 98.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Putra Rajawali Kencana vs. Sejahtera Bintang Abadi
Performance |
| Timeline |
| Putra Rajawali Kencana |
| Sejahtera Bintang Abadi |
Putra Rajawali and Sejahtera Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putra Rajawali and Sejahtera Bintang
The main advantage of trading using opposite Putra Rajawali and Sejahtera Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putra Rajawali position performs unexpectedly, Sejahtera Bintang 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 Sejahtera Bintang will offset losses from the drop in Sejahtera Bintang's long position.| Putra Rajawali vs. PT Trimuda Nuansa | Putra Rajawali vs. Yelooo Integra Datanet | Putra Rajawali vs. Transcoal Pacific Tbk | Putra Rajawali vs. Weha Transportasi Indonesia |
| Sejahtera Bintang vs. Putra Rajawali Kencana | Sejahtera Bintang vs. Karya Bersama Anugerah | Sejahtera Bintang vs. Era Mandiri Cemerlang | Sejahtera Bintang vs. Terregra Asia Energy |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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