Correlation Between Saraswanti Anugerah and Satyamitra Kemas
Can any of the company-specific risk be diversified away by investing in both Saraswanti Anugerah and Satyamitra Kemas 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 Satyamitra Kemas 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 Satyamitra Kemas Lestari, you can compare the effects of market volatilities on Saraswanti Anugerah and Satyamitra Kemas 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 Satyamitra Kemas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saraswanti Anugerah and Satyamitra Kemas.
Diversification Opportunities for Saraswanti Anugerah and Satyamitra Kemas
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saraswanti and Satyamitra is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Saraswanti Anugerah Makmur and Satyamitra Kemas Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satyamitra Kemas Lestari 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 Satyamitra Kemas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satyamitra Kemas Lestari has no effect on the direction of Saraswanti Anugerah i.e., Saraswanti Anugerah and Satyamitra Kemas go up and down completely randomly.
Pair Corralation between Saraswanti Anugerah and Satyamitra Kemas
Assuming the 90 days trading horizon Saraswanti Anugerah Makmur is expected to generate 0.88 times more return on investment than Satyamitra Kemas. However, Saraswanti Anugerah Makmur is 1.13 times less risky than Satyamitra Kemas. It trades about 0.23 of its potential returns per unit of risk. Satyamitra Kemas Lestari is currently generating about -0.23 per unit of risk. If you would invest 74,000 in Saraswanti Anugerah Makmur on September 14, 2024 and sell it today you would earn a total of 6,000 from holding Saraswanti Anugerah Makmur or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saraswanti Anugerah Makmur vs. Satyamitra Kemas Lestari
Performance |
| Timeline |
| Saraswanti Anugerah |
| Satyamitra Kemas Lestari |
Saraswanti Anugerah and Satyamitra Kemas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saraswanti Anugerah and Satyamitra Kemas
The main advantage of trading using opposite Saraswanti Anugerah and Satyamitra Kemas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saraswanti Anugerah position performs unexpectedly, Satyamitra Kemas 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 Satyamitra Kemas will offset losses from the drop in Satyamitra Kemas' 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 |
| Satyamitra Kemas vs. Saraswanti Anugerah Makmur | Satyamitra Kemas vs. Panca Budi Idaman | Satyamitra Kemas vs. Indonesia Fibreboard Industry | Satyamitra Kemas vs. Kencana Energi Lestari |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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