Correlation Between Sarana Meditama and Aneka Gas
Can any of the company-specific risk be diversified away by investing in both Sarana Meditama and Aneka Gas 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 Sarana Meditama and Aneka Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarana Meditama Metropolitan and Aneka Gas Industri, you can compare the effects of market volatilities on Sarana Meditama and Aneka Gas 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 Sarana Meditama with a short position of Aneka Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarana Meditama and Aneka Gas.
Diversification Opportunities for Sarana Meditama and Aneka Gas
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sarana and Aneka is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sarana Meditama Metropolitan and Aneka Gas Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aneka Gas Industri and Sarana Meditama 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 Sarana Meditama Metropolitan are associated (or correlated) with Aneka Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aneka Gas Industri has no effect on the direction of Sarana Meditama i.e., Sarana Meditama and Aneka Gas go up and down completely randomly.
Pair Corralation between Sarana Meditama and Aneka Gas
Assuming the 90 days trading horizon Sarana Meditama Metropolitan is expected to under-perform the Aneka Gas. In addition to that, Sarana Meditama is 2.79 times more volatile than Aneka Gas Industri. It trades about -0.17 of its total potential returns per unit of risk. Aneka Gas Industri is currently generating about -0.15 per unit of volatility. If you would invest 173,000 in Aneka Gas Industri on August 25, 2024 and sell it today you would lose (5,000) from holding Aneka Gas Industri or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sarana Meditama Metropolitan vs. Aneka Gas Industri
Performance |
| Timeline |
| Sarana Meditama Metr |
| Aneka Gas Industri |
Sarana Meditama and Aneka Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarana Meditama and Aneka Gas
The main advantage of trading using opposite Sarana Meditama and Aneka Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarana Meditama position performs unexpectedly, Aneka Gas 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 Aneka Gas will offset losses from the drop in Aneka Gas' long position.| Sarana Meditama vs. Siloam International Hospitals | Sarana Meditama vs. Mitra Keluarga Karyasehat | Sarana Meditama vs. Adi Sarana Armada | Sarana Meditama vs. Elang Mahkota Teknologi |
| Aneka Gas vs. Surya Esa Perkasa | Aneka Gas vs. Elang Mahkota Teknologi | Aneka Gas vs. Merdeka Copper Gold | Aneka Gas vs. Saratoga Investama Sedaya |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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