Correlation Between PT Sari and Pudjiadi Sons
Can any of the company-specific risk be diversified away by investing in both PT Sari and Pudjiadi Sons 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 Pudjiadi Sons 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 Pudjiadi Sons Tbk, you can compare the effects of market volatilities on PT Sari and Pudjiadi Sons 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 Pudjiadi Sons. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sari and Pudjiadi Sons.
Diversification Opportunities for PT Sari and Pudjiadi Sons
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RAFI and Pudjiadi is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding PT Sari Kreasi and Pudjiadi Sons Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pudjiadi Sons 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 Pudjiadi Sons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pudjiadi Sons Tbk has no effect on the direction of PT Sari i.e., PT Sari and Pudjiadi Sons go up and down completely randomly.
Pair Corralation between PT Sari and Pudjiadi Sons
Assuming the 90 days trading horizon PT Sari Kreasi is expected to under-perform the Pudjiadi Sons. In addition to that, PT Sari is 1.2 times more volatile than Pudjiadi Sons Tbk. It trades about -0.07 of its total potential returns per unit of risk. Pudjiadi Sons Tbk is currently generating about 0.1 per unit of volatility. If you would invest 41,614 in Pudjiadi Sons Tbk on September 3, 2024 and sell it today you would earn a total of 94,386 from holding Pudjiadi Sons Tbk or generate 226.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sari Kreasi vs. Pudjiadi Sons Tbk
Performance |
| Timeline |
| PT Sari Kreasi |
| Pudjiadi Sons Tbk |
PT Sari and Pudjiadi Sons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sari and Pudjiadi Sons
The main advantage of trading using opposite PT Sari and Pudjiadi Sons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sari position performs unexpectedly, Pudjiadi Sons 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 Pudjiadi Sons will offset losses from the drop in Pudjiadi Sons' long position.| PT Sari vs. Pudjiadi Sons Tbk | PT Sari vs. Hotel Sahid Jaya | PT Sari vs. Panorama Sentrawisata Tbk | PT Sari vs. Pembangunan Jaya Ancol |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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