Correlation Between Satyamitra Kemas and Saraswanti Anugerah
Can any of the company-specific risk be diversified away by investing in both Satyamitra Kemas and Saraswanti Anugerah 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 Saraswanti Anugerah 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 Saraswanti Anugerah Makmur, you can compare the effects of market volatilities on Satyamitra Kemas and Saraswanti Anugerah 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 Saraswanti Anugerah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satyamitra Kemas and Saraswanti Anugerah.
Diversification Opportunities for Satyamitra Kemas and Saraswanti Anugerah
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Satyamitra and Saraswanti is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Satyamitra Kemas Lestari and Saraswanti Anugerah Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saraswanti Anugerah 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 Saraswanti Anugerah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saraswanti Anugerah has no effect on the direction of Satyamitra Kemas i.e., Satyamitra Kemas and Saraswanti Anugerah go up and down completely randomly.
Pair Corralation between Satyamitra Kemas and Saraswanti Anugerah
Assuming the 90 days trading horizon Satyamitra Kemas is expected to generate 2.3 times less return on investment than Saraswanti Anugerah. But when comparing it to its historical volatility, Satyamitra Kemas Lestari is 2.46 times less risky than Saraswanti Anugerah. It trades about 0.1 of its potential returns per unit of risk. Saraswanti Anugerah Makmur is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 78,000 in Saraswanti Anugerah Makmur on October 22, 2024 and sell it today you would earn a total of 4,500 from holding Saraswanti Anugerah Makmur or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satyamitra Kemas Lestari vs. Saraswanti Anugerah Makmur
Performance |
| Timeline |
| Satyamitra Kemas Lestari |
| Saraswanti Anugerah |
Satyamitra Kemas and Saraswanti Anugerah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satyamitra Kemas and Saraswanti Anugerah
The main advantage of trading using opposite Satyamitra Kemas and Saraswanti Anugerah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satyamitra Kemas position performs unexpectedly, Saraswanti Anugerah 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 Saraswanti Anugerah will offset losses from the drop in Saraswanti Anugerah'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 |
| Saraswanti Anugerah vs. Panca Budi Idaman | Saraswanti Anugerah vs. Gunung Raja Paksi | Saraswanti Anugerah vs. Aneka Gas Industri | Saraswanti Anugerah vs. Mark Dynamics Indonesia |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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