Correlation Between PT Sarimelati and Map Boga
Can any of the company-specific risk be diversified away by investing in both PT Sarimelati and Map Boga 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 PT Sarimelati and Map Boga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sarimelati Kencana and Map Boga Adiperkasa, you can compare the effects of market volatilities on PT Sarimelati and Map Boga 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 PT Sarimelati with a short position of Map Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sarimelati and Map Boga.
Diversification Opportunities for PT Sarimelati and Map Boga
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PZZA and Map is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding PT Sarimelati Kencana and Map Boga Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Map Boga Adiperkasa and PT Sarimelati 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 PT Sarimelati Kencana are associated (or correlated) with Map Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Map Boga Adiperkasa has no effect on the direction of PT Sarimelati i.e., PT Sarimelati and Map Boga go up and down completely randomly.
Pair Corralation between PT Sarimelati and Map Boga
Assuming the 90 days trading horizon PT Sarimelati Kencana is expected to under-perform the Map Boga. In addition to that, PT Sarimelati is 4.79 times more volatile than Map Boga Adiperkasa. It trades about -0.62 of its total potential returns per unit of risk. Map Boga Adiperkasa is currently generating about -0.25 per unit of volatility. If you would invest 144,000 in Map Boga Adiperkasa on August 29, 2024 and sell it today you would lose (6,000) from holding Map Boga Adiperkasa or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sarimelati Kencana vs. Map Boga Adiperkasa
Performance |
| Timeline |
| PT Sarimelati Kencana |
| Map Boga Adiperkasa |
PT Sarimelati and Map Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sarimelati and Map Boga
The main advantage of trading using opposite PT Sarimelati and Map Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sarimelati position performs unexpectedly, Map Boga 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 Map Boga will offset losses from the drop in Map Boga's long position.| PT Sarimelati vs. Fast Food Indonesia | PT Sarimelati vs. Medikaloka Hermina PT | PT Sarimelati vs. Prodia Widyahusada Tbk | PT Sarimelati vs. MAP Aktif Adiperkasa |
| Map Boga vs. MAP Aktif Adiperkasa | Map Boga vs. Fast Food Indonesia | Map Boga vs. PT Sarimelati Kencana | Map Boga vs. Prodia Widyahusada Tbk |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |