Correlation Between Saraswanti Anugerah and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Saraswanti Anugerah and PT Sunter 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 PT Sunter 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 PT Sunter Lakeside, you can compare the effects of market volatilities on Saraswanti Anugerah and PT Sunter 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 PT Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saraswanti Anugerah and PT Sunter.
Diversification Opportunities for Saraswanti Anugerah and PT Sunter
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Saraswanti and SNLK is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Saraswanti Anugerah Makmur and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside 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 PT Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Saraswanti Anugerah i.e., Saraswanti Anugerah and PT Sunter go up and down completely randomly.
Pair Corralation between Saraswanti Anugerah and PT Sunter
Assuming the 90 days trading horizon Saraswanti Anugerah is expected to generate 1.32 times less return on investment than PT Sunter. But when comparing it to its historical volatility, Saraswanti Anugerah Makmur is 3.59 times less risky than PT Sunter. It trades about 0.12 of its potential returns per unit of risk. PT Sunter Lakeside is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 69,000 in PT Sunter Lakeside on September 5, 2024 and sell it today you would earn a total of 9,000 from holding PT Sunter Lakeside or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Saraswanti Anugerah Makmur vs. PT Sunter Lakeside
Performance |
| Timeline |
| Saraswanti Anugerah |
| PT Sunter Lakeside |
Saraswanti Anugerah and PT Sunter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saraswanti Anugerah and PT Sunter
The main advantage of trading using opposite Saraswanti Anugerah and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saraswanti Anugerah position performs unexpectedly, PT Sunter 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 PT Sunter will offset losses from the drop in PT Sunter'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 |
| PT Sunter vs. Campina Ice Cream | PT Sunter vs. Mitra Pinasthika Mustika | PT Sunter vs. Jakarta Int Hotels | PT Sunter vs. Indosat Tbk |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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