Correlation Between Sido Muncul and Austindo Nusantara
Can any of the company-specific risk be diversified away by investing in both Sido Muncul and Austindo Nusantara 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 Sido Muncul and Austindo Nusantara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sido Muncul PT and Austindo Nusantara Jaya, you can compare the effects of market volatilities on Sido Muncul and Austindo Nusantara 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 Sido Muncul with a short position of Austindo Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sido Muncul and Austindo Nusantara.
Diversification Opportunities for Sido Muncul and Austindo Nusantara
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sido and Austindo is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sido Muncul PT and Austindo Nusantara Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austindo Nusantara Jaya and Sido Muncul 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 Sido Muncul PT are associated (or correlated) with Austindo Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austindo Nusantara Jaya has no effect on the direction of Sido Muncul i.e., Sido Muncul and Austindo Nusantara go up and down completely randomly.
Pair Corralation between Sido Muncul and Austindo Nusantara
Assuming the 90 days trading horizon Sido Muncul PT is expected to under-perform the Austindo Nusantara. In addition to that, Sido Muncul is 1.06 times more volatile than Austindo Nusantara Jaya. It trades about -0.01 of its total potential returns per unit of risk. Austindo Nusantara Jaya is currently generating about 0.03 per unit of volatility. If you would invest 62,473 in Austindo Nusantara Jaya on September 14, 2024 and sell it today you would earn a total of 11,027 from holding Austindo Nusantara Jaya or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sido Muncul PT vs. Austindo Nusantara Jaya
Performance |
| Timeline |
| Sido Muncul PT |
| Austindo Nusantara Jaya |
Sido Muncul and Austindo Nusantara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sido Muncul and Austindo Nusantara
The main advantage of trading using opposite Sido Muncul and Austindo Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sido Muncul position performs unexpectedly, Austindo Nusantara 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 Austindo Nusantara will offset losses from the drop in Austindo Nusantara's long position.| Sido Muncul vs. Austindo Nusantara Jaya | Sido Muncul vs. Garudafood Putra Putri | Sido Muncul vs. Provident Agro Tbk | Sido Muncul vs. Dharma Satya Nusantara |
| Austindo Nusantara vs. Dharma Satya Nusantara | Austindo Nusantara vs. Provident Agro Tbk | Austindo Nusantara vs. Salim Ivomas Pratama | Austindo Nusantara vs. Jaya Agra Wattie |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |