Correlation Between PT Sari and Meta Epsi
Can any of the company-specific risk be diversified away by investing in both PT Sari and Meta Epsi 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 Sari and Meta Epsi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sari Kreasi and Meta Epsi Tbk, you can compare the effects of market volatilities on PT Sari and Meta Epsi 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 Sari with a short position of Meta Epsi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sari and Meta Epsi.
Diversification Opportunities for PT Sari and Meta Epsi
Very good diversification
The 3 months correlation between RAFI and Meta is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PT Sari Kreasi and Meta Epsi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Epsi Tbk and PT Sari 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 Sari Kreasi are associated (or correlated) with Meta Epsi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Epsi Tbk has no effect on the direction of PT Sari i.e., PT Sari and Meta Epsi go up and down completely randomly.
Pair Corralation between PT Sari and Meta Epsi
Assuming the 90 days trading horizon PT Sari Kreasi is expected to generate 0.66 times more return on investment than Meta Epsi. However, PT Sari Kreasi is 1.51 times less risky than Meta Epsi. It trades about -0.06 of its potential returns per unit of risk. Meta Epsi Tbk is currently generating about -0.04 per unit of risk. If you would invest 15,335 in PT Sari Kreasi on September 12, 2024 and sell it today you would lose (11,735) from holding PT Sari Kreasi or give up 76.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
PT Sari Kreasi vs. Meta Epsi Tbk
Performance |
| Timeline |
| PT Sari Kreasi |
| Meta Epsi Tbk |
PT Sari and Meta Epsi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sari and Meta Epsi
The main advantage of trading using opposite PT Sari and Meta Epsi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sari position performs unexpectedly, Meta Epsi 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 Meta Epsi will offset losses from the drop in Meta Epsi's long position.| PT Sari vs. PT Dewi Shri | PT Sari vs. Bangun Karya Perkasa | PT Sari vs. Gaya Abadi Sempurna | PT Sari vs. Habco Trans Maritima |
| Meta Epsi vs. PT Hetzer Medical | Meta Epsi vs. PT Dewi Shri | Meta Epsi vs. PT Sari Kreasi | Meta Epsi vs. Gaya Abadi Sempurna |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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