Correlation Between Saraswanti Anugerah and Ladangbaja Murni
Can any of the company-specific risk be diversified away by investing in both Saraswanti Anugerah and Ladangbaja Murni 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 Ladangbaja Murni 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 Ladangbaja Murni PT, you can compare the effects of market volatilities on Saraswanti Anugerah and Ladangbaja Murni 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 Ladangbaja Murni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saraswanti Anugerah and Ladangbaja Murni.
Diversification Opportunities for Saraswanti Anugerah and Ladangbaja Murni
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saraswanti and Ladangbaja is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Saraswanti Anugerah Makmur and Ladangbaja Murni PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladangbaja Murni 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 Ladangbaja Murni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladangbaja Murni has no effect on the direction of Saraswanti Anugerah i.e., Saraswanti Anugerah and Ladangbaja Murni go up and down completely randomly.
Pair Corralation between Saraswanti Anugerah and Ladangbaja Murni
Assuming the 90 days trading horizon Saraswanti Anugerah Makmur is expected to generate 0.24 times more return on investment than Ladangbaja Murni. However, Saraswanti Anugerah Makmur is 4.2 times less risky than Ladangbaja Murni. It trades about -0.2 of its potential returns per unit of risk. Ladangbaja Murni PT is currently generating about -0.11 per unit of risk. If you would invest 80,000 in Saraswanti Anugerah Makmur on August 29, 2024 and sell it today you would lose (5,000) from holding Saraswanti Anugerah Makmur or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saraswanti Anugerah Makmur vs. Ladangbaja Murni PT
Performance |
| Timeline |
| Saraswanti Anugerah |
| Ladangbaja Murni |
Saraswanti Anugerah and Ladangbaja Murni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saraswanti Anugerah and Ladangbaja Murni
The main advantage of trading using opposite Saraswanti Anugerah and Ladangbaja Murni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saraswanti Anugerah position performs unexpectedly, Ladangbaja Murni 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 Ladangbaja Murni will offset losses from the drop in Ladangbaja Murni'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 |
| Ladangbaja Murni vs. PAM Mineral Tbk | Ladangbaja Murni vs. Nusa Palapa Gemilang | Ladangbaja Murni vs. PT Harapan Duta | Ladangbaja Murni vs. Diagnos Laboratorium Utama |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |