Correlation Between Sejahtera Bintang and Planet Properindo
Can any of the company-specific risk be diversified away by investing in both Sejahtera Bintang and Planet Properindo 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 Planet Properindo 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 Planet Properindo Jaya, you can compare the effects of market volatilities on Sejahtera Bintang and Planet Properindo 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 Planet Properindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejahtera Bintang and Planet Properindo.
Diversification Opportunities for Sejahtera Bintang and Planet Properindo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sejahtera and Planet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sejahtera Bintang Abadi and Planet Properindo Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Properindo Jaya 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 Planet Properindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Properindo Jaya has no effect on the direction of Sejahtera Bintang i.e., Sejahtera Bintang and Planet Properindo go up and down completely randomly.
Pair Corralation between Sejahtera Bintang and Planet Properindo
Assuming the 90 days trading horizon Sejahtera Bintang Abadi is expected to generate 5.39 times more return on investment than Planet Properindo. However, Sejahtera Bintang is 5.39 times more volatile than Planet Properindo Jaya. It trades about 0.07 of its potential returns per unit of risk. Planet Properindo Jaya is currently generating about 0.13 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. Planet Properindo Jaya
Performance |
| Timeline |
| Sejahtera Bintang Abadi |
| Planet Properindo Jaya |
Sejahtera Bintang and Planet Properindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sejahtera Bintang and Planet Properindo
The main advantage of trading using opposite Sejahtera Bintang and Planet Properindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejahtera Bintang position performs unexpectedly, Planet Properindo 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 Planet Properindo will offset losses from the drop in Planet Properindo'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 |
| Planet Properindo vs. PT Boston Furniture | Planet Properindo vs. Sejahtera Bintang Abadi | Planet Properindo vs. Menteng Heritage Realty | Planet Properindo vs. Lancartama Sejati 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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