Correlation Between PT Sarana and SITO Mobile
Can any of the company-specific risk be diversified away by investing in both PT Sarana and SITO Mobile 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 PT Sarana and SITO Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sarana Menara and SITO Mobile, you can compare the effects of market volatilities on PT Sarana and SITO Mobile 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 PT Sarana with a short position of SITO Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sarana and SITO Mobile.
Diversification Opportunities for PT Sarana and SITO Mobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMNUF and SITO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Sarana Menara and SITO Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITO Mobile and PT Sarana 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 PT Sarana Menara are associated (or correlated) with SITO Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITO Mobile has no effect on the direction of PT Sarana i.e., PT Sarana and SITO Mobile go up and down completely randomly.
Pair Corralation between PT Sarana and SITO Mobile
If you would invest (100.00) in SITO Mobile on January 12, 2025 and sell it today you would earn a total of 100.00 from holding SITO Mobile or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sarana Menara vs. SITO Mobile
Performance |
| Timeline |
| PT Sarana Menara |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| SITO Mobile |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PT Sarana and SITO Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sarana and SITO Mobile
The main advantage of trading using opposite PT Sarana and SITO Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sarana position performs unexpectedly, SITO Mobile 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 SITO Mobile will offset losses from the drop in SITO Mobile's long position.| PT Sarana vs. Proximus NV ADR | PT Sarana vs. Singapore Telecommunications Limited | PT Sarana vs. Telstra Limited | PT Sarana vs. MTN Group Ltd |
| SITO Mobile vs. Tele2 AB | SITO Mobile vs. Crexendo | SITO Mobile vs. Telefonica Brasil SA | SITO Mobile vs. Vodafone Group PLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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