Correlation Between Hotel Sahid and Prima Alloy
Can any of the company-specific risk be diversified away by investing in both Hotel Sahid and Prima Alloy 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 Prima Alloy 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 Prima Alloy Steel, you can compare the effects of market volatilities on Hotel Sahid and Prima Alloy 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 Prima Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sahid and Prima Alloy.
Diversification Opportunities for Hotel Sahid and Prima Alloy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hotel and Prima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sahid Jaya and Prima Alloy Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prima Alloy Steel 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 Prima Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prima Alloy Steel has no effect on the direction of Hotel Sahid i.e., Hotel Sahid and Prima Alloy go up and down completely randomly.
Pair Corralation between Hotel Sahid and Prima Alloy
If you would invest 90,000 in Hotel Sahid Jaya on September 13, 2024 and sell it today you would earn a total of 5,000 from holding Hotel Sahid Jaya or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Sahid Jaya vs. Prima Alloy Steel
Performance |
| Timeline |
| Hotel Sahid Jaya |
| Prima Alloy Steel |
Hotel Sahid and Prima Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Sahid and Prima Alloy
The main advantage of trading using opposite Hotel Sahid and Prima Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sahid position performs unexpectedly, Prima Alloy 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 Prima Alloy will offset losses from the drop in Prima Alloy's long position.| Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Sona Topas Tourism | Hotel Sahid vs. Millennium Pharmacon International |
| Prima Alloy vs. Pan Brothers Tbk | Prima Alloy vs. Ricky Putra Globalindo | Prima Alloy vs. Asia Pacific Fibers | Prima Alloy vs. Multi Prima Sejahtera |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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