Correlation Between Sumber Mas and Wijaya Karya
Can any of the company-specific risk be diversified away by investing in both Sumber Mas and Wijaya Karya 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 Sumber Mas and Wijaya Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumber Mas Konstruksi and Wijaya Karya Bangunan, you can compare the effects of market volatilities on Sumber Mas and Wijaya Karya 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 Sumber Mas with a short position of Wijaya Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Mas and Wijaya Karya.
Diversification Opportunities for Sumber Mas and Wijaya Karya
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sumber and Wijaya is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Mas Konstruksi and Wijaya Karya Bangunan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wijaya Karya Bangunan and Sumber Mas 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 Sumber Mas Konstruksi are associated (or correlated) with Wijaya Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wijaya Karya Bangunan has no effect on the direction of Sumber Mas i.e., Sumber Mas and Wijaya Karya go up and down completely randomly.
Pair Corralation between Sumber Mas and Wijaya Karya
Assuming the 90 days trading horizon Sumber Mas Konstruksi is expected to under-perform the Wijaya Karya. In addition to that, Sumber Mas is 1.56 times more volatile than Wijaya Karya Bangunan. It trades about -0.2 of its total potential returns per unit of risk. Wijaya Karya Bangunan is currently generating about -0.2 per unit of volatility. If you would invest 6,700 in Wijaya Karya Bangunan on November 3, 2024 and sell it today you would lose (700.00) from holding Wijaya Karya Bangunan or give up 10.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sumber Mas Konstruksi vs. Wijaya Karya Bangunan
Performance |
| Timeline |
| Sumber Mas Konstruksi |
| Wijaya Karya Bangunan |
Sumber Mas and Wijaya Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Mas and Wijaya Karya
The main advantage of trading using opposite Sumber Mas and Wijaya Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Mas position performs unexpectedly, Wijaya Karya 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 Wijaya Karya will offset losses from the drop in Wijaya Karya's long position.| Sumber Mas vs. Wahana Inti MakmurTbk | Sumber Mas vs. Sumber Tani Agung | Sumber Mas vs. Nanotech Indonesia Global | Sumber Mas vs. RMK Energy PT |
| Wijaya Karya vs. Wijaya Karya Beton | Wijaya Karya vs. Waskita Beton Precast | Wijaya Karya vs. Pembangunan Perumahan PT | Wijaya Karya vs. Puradelta Lestari PT |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |