Correlation Between Sejahtera Bintang and Putra Rajawali
Can any of the company-specific risk be diversified away by investing in both Sejahtera Bintang and Putra Rajawali 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 Putra Rajawali 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 Putra Rajawali Kencana, you can compare the effects of market volatilities on Sejahtera Bintang and Putra Rajawali 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 Putra Rajawali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejahtera Bintang and Putra Rajawali.
Diversification Opportunities for Sejahtera Bintang and Putra Rajawali
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sejahtera and Putra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sejahtera Bintang Abadi and Putra Rajawali Kencana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putra Rajawali Kencana 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 Putra Rajawali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putra Rajawali Kencana has no effect on the direction of Sejahtera Bintang i.e., Sejahtera Bintang and Putra Rajawali go up and down completely randomly.
Pair Corralation between Sejahtera Bintang and Putra Rajawali
If you would invest 100.00 in Sejahtera Bintang Abadi on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Sejahtera Bintang Abadi or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sejahtera Bintang Abadi vs. Putra Rajawali Kencana
Performance |
| Timeline |
| Sejahtera Bintang Abadi |
| Putra Rajawali Kencana |
Sejahtera Bintang and Putra Rajawali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sejahtera Bintang and Putra Rajawali
The main advantage of trading using opposite Sejahtera Bintang and Putra Rajawali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejahtera Bintang position performs unexpectedly, Putra Rajawali 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 Putra Rajawali will offset losses from the drop in Putra Rajawali's long position.| Sejahtera Bintang vs. Putra Rajawali Kencana | Sejahtera Bintang vs. Karya Bersama Anugerah | Sejahtera Bintang vs. Era Mandiri Cemerlang | Sejahtera Bintang vs. Terregra Asia Energy |
| Putra Rajawali vs. PT Trimuda Nuansa | Putra Rajawali vs. Yelooo Integra Datanet | Putra Rajawali vs. Transcoal Pacific Tbk | Putra Rajawali vs. Weha Transportasi 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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