Correlation Between PT Sari and Pt Pradiksi
Can any of the company-specific risk be diversified away by investing in both PT Sari and Pt Pradiksi 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 Pt Pradiksi 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 Pt Pradiksi Gunatama, you can compare the effects of market volatilities on PT Sari and Pt Pradiksi 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 Pt Pradiksi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sari and Pt Pradiksi.
Diversification Opportunities for PT Sari and Pt Pradiksi
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between RAFI and PGUN is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PT Sari Kreasi and Pt Pradiksi Gunatama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pradiksi Gunatama 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 Pt Pradiksi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pradiksi Gunatama has no effect on the direction of PT Sari i.e., PT Sari and Pt Pradiksi go up and down completely randomly.
Pair Corralation between PT Sari and Pt Pradiksi
Assuming the 90 days trading horizon PT Sari Kreasi is expected to under-perform the Pt Pradiksi. In addition to that, PT Sari is 4.78 times more volatile than Pt Pradiksi Gunatama. It trades about -0.01 of its total potential returns per unit of risk. Pt Pradiksi Gunatama is currently generating about 0.19 per unit of volatility. If you would invest 34,000 in Pt Pradiksi Gunatama on September 2, 2024 and sell it today you would earn a total of 8,400 from holding Pt Pradiksi Gunatama or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
PT Sari Kreasi vs. Pt Pradiksi Gunatama
Performance |
| Timeline |
| PT Sari Kreasi |
| Pt Pradiksi Gunatama |
PT Sari and Pt Pradiksi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sari and Pt Pradiksi
The main advantage of trading using opposite PT Sari and Pt Pradiksi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sari position performs unexpectedly, Pt Pradiksi 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 Pt Pradiksi will offset losses from the drop in Pt Pradiksi'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 |
| Pt Pradiksi vs. Habco Trans Maritima | Pt Pradiksi vs. PT Cilacap Samudera | Pt Pradiksi vs. PT Sari Kreasi | Pt Pradiksi vs. Autopedia Sukses Lestari |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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