Correlation Between Sejahtera Bintang and Menteng Heritage
Can any of the company-specific risk be diversified away by investing in both Sejahtera Bintang and Menteng Heritage 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 Sejahtera Bintang and Menteng Heritage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sejahtera Bintang Abadi and Menteng Heritage Realty, you can compare the effects of market volatilities on Sejahtera Bintang and Menteng Heritage 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 Sejahtera Bintang with a short position of Menteng Heritage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejahtera Bintang and Menteng Heritage.
Diversification Opportunities for Sejahtera Bintang and Menteng Heritage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sejahtera and Menteng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sejahtera Bintang Abadi and Menteng Heritage Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menteng Heritage Realty and Sejahtera Bintang 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 Sejahtera Bintang Abadi are associated (or correlated) with Menteng Heritage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menteng Heritage Realty has no effect on the direction of Sejahtera Bintang i.e., Sejahtera Bintang and Menteng Heritage go up and down completely randomly.
Pair Corralation between Sejahtera Bintang and Menteng Heritage
Assuming the 90 days trading horizon Sejahtera Bintang Abadi is expected to generate 5.42 times more return on investment than Menteng Heritage. However, Sejahtera Bintang is 5.42 times more volatile than Menteng Heritage Realty. It trades about 0.07 of its potential returns per unit of risk. Menteng Heritage Realty is currently generating about 0.19 per unit of risk. If you would invest 200.00 in Sejahtera Bintang Abadi on September 1, 2024 and sell it today you would lose (100.00) from holding Sejahtera Bintang Abadi or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sejahtera Bintang Abadi vs. Menteng Heritage Realty
Performance |
| Timeline |
| Sejahtera Bintang Abadi |
| Menteng Heritage Realty |
Sejahtera Bintang and Menteng Heritage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sejahtera Bintang and Menteng Heritage
The main advantage of trading using opposite Sejahtera Bintang and Menteng Heritage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejahtera Bintang position performs unexpectedly, Menteng Heritage 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 Menteng Heritage will offset losses from the drop in Menteng Heritage's long position.| Sejahtera Bintang vs. Eratex Djaja Tbk | Sejahtera Bintang vs. Ever Shine Textile | Sejahtera Bintang vs. Argo Pantes Tbk | Sejahtera Bintang vs. Primarindo Asia Infrastructure |
| Menteng Heritage vs. Jasa Armada Indonesia | Menteng Heritage vs. Cahayaputra Asa Keramik | Menteng Heritage vs. Campina Ice Cream | Menteng Heritage vs. Integra Indocabinet 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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