Correlation Between Saraswanti Anugerah and Sumber Global
Can any of the company-specific risk be diversified away by investing in both Saraswanti Anugerah and Sumber Global 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 Sumber Global 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 Sumber Global Energy, you can compare the effects of market volatilities on Saraswanti Anugerah and Sumber Global 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 Sumber Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saraswanti Anugerah and Sumber Global.
Diversification Opportunities for Saraswanti Anugerah and Sumber Global
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saraswanti and Sumber is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Saraswanti Anugerah Makmur and Sumber Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Global Energy 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 Sumber Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Global Energy has no effect on the direction of Saraswanti Anugerah i.e., Saraswanti Anugerah and Sumber Global go up and down completely randomly.
Pair Corralation between Saraswanti Anugerah and Sumber Global
Assuming the 90 days trading horizon Saraswanti Anugerah Makmur is expected to generate 0.69 times more return on investment than Sumber Global. However, Saraswanti Anugerah Makmur is 1.44 times less risky than Sumber Global. It trades about -0.19 of its potential returns per unit of risk. Sumber Global Energy is currently generating about -0.14 per unit of risk. If you would invest 80,000 in Saraswanti Anugerah Makmur on August 30, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saraswanti Anugerah Makmur vs. Sumber Global Energy
Performance |
| Timeline |
| Saraswanti Anugerah |
| Sumber Global Energy |
Saraswanti Anugerah and Sumber Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saraswanti Anugerah and Sumber Global
The main advantage of trading using opposite Saraswanti Anugerah and Sumber Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saraswanti Anugerah position performs unexpectedly, Sumber Global 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 Sumber Global will offset losses from the drop in Sumber Global'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 |
| Sumber Global vs. Golden Eagle Energy | Sumber Global vs. Baramulti Suksessarana Tbk | Sumber Global vs. TBS Energi Utama | Sumber Global vs. Resource Alam Indonesia |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |