Correlation Between Satyamitra Kemas and Agro Yasa
Can any of the company-specific risk be diversified away by investing in both Satyamitra Kemas and Agro Yasa 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 Satyamitra Kemas and Agro Yasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Satyamitra Kemas Lestari and Agro Yasa Lestari, you can compare the effects of market volatilities on Satyamitra Kemas and Agro Yasa 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 Satyamitra Kemas with a short position of Agro Yasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satyamitra Kemas and Agro Yasa.
Diversification Opportunities for Satyamitra Kemas and Agro Yasa
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Satyamitra and Agro is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Satyamitra Kemas Lestari and Agro Yasa Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agro Yasa Lestari and Satyamitra Kemas 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 Satyamitra Kemas Lestari are associated (or correlated) with Agro Yasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agro Yasa Lestari has no effect on the direction of Satyamitra Kemas i.e., Satyamitra Kemas and Agro Yasa go up and down completely randomly.
Pair Corralation between Satyamitra Kemas and Agro Yasa
Assuming the 90 days trading horizon Satyamitra Kemas Lestari is expected to generate 0.4 times more return on investment than Agro Yasa. However, Satyamitra Kemas Lestari is 2.49 times less risky than Agro Yasa. It trades about -0.26 of its potential returns per unit of risk. Agro Yasa Lestari is currently generating about -0.19 per unit of risk. If you would invest 18,000 in Satyamitra Kemas Lestari on September 13, 2024 and sell it today you would lose (1,900) from holding Satyamitra Kemas Lestari or give up 10.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satyamitra Kemas Lestari vs. Agro Yasa Lestari
Performance |
| Timeline |
| Satyamitra Kemas Lestari |
| Agro Yasa Lestari |
Satyamitra Kemas and Agro Yasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satyamitra Kemas and Agro Yasa
The main advantage of trading using opposite Satyamitra Kemas and Agro Yasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satyamitra Kemas position performs unexpectedly, Agro Yasa 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 Agro Yasa will offset losses from the drop in Agro Yasa's long position.| Satyamitra Kemas vs. Saraswanti Anugerah Makmur | Satyamitra Kemas vs. Panca Budi Idaman | Satyamitra Kemas vs. Indonesia Fibreboard Industry | Satyamitra Kemas vs. Kencana Energi Lestari |
| Agro Yasa vs. Sinergi Inti Plastindo | Agro Yasa vs. Bank Amar Indonesia | Agro Yasa vs. Andalan Sakti Primaindo | Agro Yasa vs. Era Mandiri Cemerlang |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |