Correlation Between PT Sari and Teladan Prima
Can any of the company-specific risk be diversified away by investing in both PT Sari and Teladan Prima 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 Teladan Prima 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 Teladan Prima Agro, you can compare the effects of market volatilities on PT Sari and Teladan Prima 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 Teladan Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sari and Teladan Prima.
Diversification Opportunities for PT Sari and Teladan Prima
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between RAFI and Teladan is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PT Sari Kreasi and Teladan Prima Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladan Prima Agro 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 Teladan Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladan Prima Agro has no effect on the direction of PT Sari i.e., PT Sari and Teladan Prima go up and down completely randomly.
Pair Corralation between PT Sari and Teladan Prima
Assuming the 90 days trading horizon PT Sari Kreasi is expected to under-perform the Teladan Prima. In addition to that, PT Sari is 3.1 times more volatile than Teladan Prima Agro. It trades about -0.07 of its total potential returns per unit of risk. Teladan Prima Agro is currently generating about 0.0 per unit of volatility. If you would invest 54,391 in Teladan Prima Agro on September 2, 2024 and sell it today you would lose (2,891) from holding Teladan Prima Agro or give up 5.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sari Kreasi vs. Teladan Prima Agro
Performance |
| Timeline |
| PT Sari Kreasi |
| Teladan Prima Agro |
PT Sari and Teladan Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sari and Teladan Prima
The main advantage of trading using opposite PT Sari and Teladan Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sari position performs unexpectedly, Teladan Prima 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 Teladan Prima will offset losses from the drop in Teladan Prima'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 |
| Teladan Prima vs. Habco Trans Maritima | Teladan Prima vs. PT Cilacap Samudera | Teladan Prima vs. PT Sari Kreasi | Teladan Prima 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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