Correlation Between Sejahtera Bintang and Lancartama Sejati
Can any of the company-specific risk be diversified away by investing in both Sejahtera Bintang and Lancartama Sejati 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 Lancartama Sejati 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 Lancartama Sejati Tbk, you can compare the effects of market volatilities on Sejahtera Bintang and Lancartama Sejati 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 Lancartama Sejati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejahtera Bintang and Lancartama Sejati.
Diversification Opportunities for Sejahtera Bintang and Lancartama Sejati
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sejahtera and Lancartama is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sejahtera Bintang Abadi and Lancartama Sejati Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lancartama Sejati Tbk 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 Lancartama Sejati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lancartama Sejati Tbk has no effect on the direction of Sejahtera Bintang i.e., Sejahtera Bintang and Lancartama Sejati go up and down completely randomly.
Pair Corralation between Sejahtera Bintang and Lancartama Sejati
Assuming the 90 days trading horizon Sejahtera Bintang Abadi is expected to generate 3.95 times more return on investment than Lancartama Sejati. However, Sejahtera Bintang is 3.95 times more volatile than Lancartama Sejati Tbk. It trades about 0.07 of its potential returns per unit of risk. Lancartama Sejati Tbk is currently generating about 0.09 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. Lancartama Sejati Tbk
Performance |
| Timeline |
| Sejahtera Bintang Abadi |
| Lancartama Sejati Tbk |
Sejahtera Bintang and Lancartama Sejati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sejahtera Bintang and Lancartama Sejati
The main advantage of trading using opposite Sejahtera Bintang and Lancartama Sejati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejahtera Bintang position performs unexpectedly, Lancartama Sejati 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 Lancartama Sejati will offset losses from the drop in Lancartama Sejati'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 |
| Lancartama Sejati vs. Perintis Triniti Properti | Lancartama Sejati vs. Diamond Citra Propertindo | Lancartama Sejati vs. Karya Bersama Anugerah | Lancartama Sejati vs. Pratama Widya 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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