Correlation Between Saraswanti Anugerah and Impack Pratama
Can any of the company-specific risk be diversified away by investing in both Saraswanti Anugerah and Impack Pratama 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 Saraswanti Anugerah and Impack Pratama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saraswanti Anugerah Makmur and Impack Pratama Industri, you can compare the effects of market volatilities on Saraswanti Anugerah and Impack Pratama 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 Saraswanti Anugerah with a short position of Impack Pratama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saraswanti Anugerah and Impack Pratama.
Diversification Opportunities for Saraswanti Anugerah and Impack Pratama
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saraswanti and Impack is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Saraswanti Anugerah Makmur and Impack Pratama Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impack Pratama Industri and Saraswanti Anugerah 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 Saraswanti Anugerah Makmur are associated (or correlated) with Impack Pratama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impack Pratama Industri has no effect on the direction of Saraswanti Anugerah i.e., Saraswanti Anugerah and Impack Pratama go up and down completely randomly.
Pair Corralation between Saraswanti Anugerah and Impack Pratama
Assuming the 90 days trading horizon Saraswanti Anugerah Makmur is expected to generate 0.79 times more return on investment than Impack Pratama. However, Saraswanti Anugerah Makmur is 1.26 times less risky than Impack Pratama. It trades about 0.07 of its potential returns per unit of risk. Impack Pratama Industri is currently generating about 0.03 per unit of risk. If you would invest 45,335 in Saraswanti Anugerah Makmur on September 3, 2024 and sell it today you would earn a total of 29,165 from holding Saraswanti Anugerah Makmur or generate 64.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saraswanti Anugerah Makmur vs. Impack Pratama Industri
Performance |
| Timeline |
| Saraswanti Anugerah |
| Impack Pratama Industri |
Saraswanti Anugerah and Impack Pratama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saraswanti Anugerah and Impack Pratama
The main advantage of trading using opposite Saraswanti Anugerah and Impack Pratama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saraswanti Anugerah position performs unexpectedly, Impack Pratama 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 Impack Pratama will offset losses from the drop in Impack Pratama's long position.| Saraswanti Anugerah vs. Panca Budi Idaman | Saraswanti Anugerah vs. Gunung Raja Paksi | Saraswanti Anugerah vs. Aneka Gas Industri | Saraswanti Anugerah vs. Mark Dynamics Indonesia |
| Impack Pratama vs. Timah Persero Tbk | Impack Pratama vs. Semen Indonesia Persero | Impack Pratama vs. Mitra Pinasthika Mustika | Impack Pratama vs. Jakarta Int Hotels |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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