Correlation Between Ramayana Lestari and Supra Boga
Can any of the company-specific risk be diversified away by investing in both Ramayana Lestari and Supra Boga 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 Ramayana Lestari and Supra Boga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramayana Lestari Sentosa and Supra Boga Lestari, you can compare the effects of market volatilities on Ramayana Lestari and Supra Boga 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 Ramayana Lestari with a short position of Supra Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramayana Lestari and Supra Boga.
Diversification Opportunities for Ramayana Lestari and Supra Boga
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ramayana and Supra is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ramayana Lestari Sentosa and Supra Boga Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supra Boga Lestari and Ramayana Lestari 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 Ramayana Lestari Sentosa are associated (or correlated) with Supra Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supra Boga Lestari has no effect on the direction of Ramayana Lestari i.e., Ramayana Lestari and Supra Boga go up and down completely randomly.
Pair Corralation between Ramayana Lestari and Supra Boga
Assuming the 90 days trading horizon Ramayana Lestari Sentosa is expected to generate 0.74 times more return on investment than Supra Boga. However, Ramayana Lestari Sentosa is 1.36 times less risky than Supra Boga. It trades about -0.02 of its potential returns per unit of risk. Supra Boga Lestari is currently generating about -0.04 per unit of risk. If you would invest 46,771 in Ramayana Lestari Sentosa on September 2, 2024 and sell it today you would lose (9,571) from holding Ramayana Lestari Sentosa or give up 20.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ramayana Lestari Sentosa vs. Supra Boga Lestari
Performance |
| Timeline |
| Ramayana Lestari Sentosa |
| Supra Boga Lestari |
Ramayana Lestari and Supra Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramayana Lestari and Supra Boga
The main advantage of trading using opposite Ramayana Lestari and Supra Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramayana Lestari position performs unexpectedly, Supra Boga 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 Supra Boga will offset losses from the drop in Supra Boga's long position.| Ramayana Lestari vs. Mitra Adiperkasa Tbk | Ramayana Lestari vs. Matahari Putra Prima | Ramayana Lestari vs. Summarecon Agung Tbk | Ramayana Lestari vs. Ciputra Development Tbk |
| Supra Boga vs. Nippon Indosari Corpindo | Supra Boga vs. Ramayana Lestari Sentosa | Supra Boga vs. Midi Utama Indonesia | Supra Boga vs. Hero Supermarket Tbk |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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