Correlation Between Hotel Sahid and Panorama Sentrawisata
Can any of the company-specific risk be diversified away by investing in both Hotel Sahid and Panorama Sentrawisata 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 Hotel Sahid and Panorama Sentrawisata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Sahid Jaya and Panorama Sentrawisata Tbk, you can compare the effects of market volatilities on Hotel Sahid and Panorama Sentrawisata 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 Hotel Sahid with a short position of Panorama Sentrawisata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sahid and Panorama Sentrawisata.
Diversification Opportunities for Hotel Sahid and Panorama Sentrawisata
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hotel and Panorama is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sahid Jaya and Panorama Sentrawisata Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panorama Sentrawisata Tbk and Hotel Sahid 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 Hotel Sahid Jaya are associated (or correlated) with Panorama Sentrawisata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panorama Sentrawisata Tbk has no effect on the direction of Hotel Sahid i.e., Hotel Sahid and Panorama Sentrawisata go up and down completely randomly.
Pair Corralation between Hotel Sahid and Panorama Sentrawisata
Assuming the 90 days trading horizon Hotel Sahid Jaya is expected to under-perform the Panorama Sentrawisata. In addition to that, Hotel Sahid is 2.96 times more volatile than Panorama Sentrawisata Tbk. It trades about -0.07 of its total potential returns per unit of risk. Panorama Sentrawisata Tbk is currently generating about 0.09 per unit of volatility. If you would invest 40,800 in Panorama Sentrawisata Tbk on August 29, 2024 and sell it today you would earn a total of 11,200 from holding Panorama Sentrawisata Tbk or generate 27.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.49% |
| Values | Daily Returns |
Hotel Sahid Jaya vs. Panorama Sentrawisata Tbk
Performance |
| Timeline |
| Hotel Sahid Jaya |
| Panorama Sentrawisata Tbk |
Hotel Sahid and Panorama Sentrawisata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Sahid and Panorama Sentrawisata
The main advantage of trading using opposite Hotel Sahid and Panorama Sentrawisata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sahid position performs unexpectedly, Panorama Sentrawisata 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 Panorama Sentrawisata will offset losses from the drop in Panorama Sentrawisata's long position.| Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Millennium Pharmacon International | Hotel Sahid vs. Tempo Inti Media |
| Panorama Sentrawisata vs. Pembangunan Jaya Ancol | Panorama Sentrawisata vs. Hotel Sahid Jaya | Panorama Sentrawisata vs. Pudjiadi Sons Tbk | Panorama Sentrawisata vs. Pioneerindo Gourmet International |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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