Correlation Between PT Sarimelati and Pembangunan Graha
Can any of the company-specific risk be diversified away by investing in both PT Sarimelati and Pembangunan Graha 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 Pembangunan Graha 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 Pembangunan Graha Lestari, you can compare the effects of market volatilities on PT Sarimelati and Pembangunan Graha 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 Pembangunan Graha. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sarimelati and Pembangunan Graha.
Diversification Opportunities for PT Sarimelati and Pembangunan Graha
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PZZA and Pembangunan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding PT Sarimelati Kencana and Pembangunan Graha Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembangunan Graha Lestari 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 Pembangunan Graha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembangunan Graha Lestari has no effect on the direction of PT Sarimelati i.e., PT Sarimelati and Pembangunan Graha go up and down completely randomly.
Pair Corralation between PT Sarimelati and Pembangunan Graha
Assuming the 90 days trading horizon PT Sarimelati Kencana is expected to under-perform the Pembangunan Graha. In addition to that, PT Sarimelati is 1.09 times more volatile than Pembangunan Graha Lestari. It trades about -0.38 of its total potential returns per unit of risk. Pembangunan Graha Lestari is currently generating about -0.02 per unit of volatility. If you would invest 18,800 in Pembangunan Graha Lestari on September 13, 2024 and sell it today you would lose (400.00) from holding Pembangunan Graha Lestari or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sarimelati Kencana vs. Pembangunan Graha Lestari
Performance |
| Timeline |
| PT Sarimelati Kencana |
| Pembangunan Graha Lestari |
PT Sarimelati and Pembangunan Graha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sarimelati and Pembangunan Graha
The main advantage of trading using opposite PT Sarimelati and Pembangunan Graha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sarimelati position performs unexpectedly, Pembangunan Graha 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 Pembangunan Graha will offset losses from the drop in Pembangunan Graha's long position.| PT Sarimelati vs. Pembangunan Graha Lestari | PT Sarimelati vs. Pembangunan Jaya Ancol | PT Sarimelati vs. Hotel Sahid Jaya | PT Sarimelati vs. Mitrabara Adiperdana PT |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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