Correlation Between PT Sunter and Jasa Armada
Can any of the company-specific risk be diversified away by investing in both PT Sunter and Jasa Armada 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 Sunter and Jasa Armada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sunter Lakeside and Jasa Armada Indonesia, you can compare the effects of market volatilities on PT Sunter and Jasa Armada 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 Sunter with a short position of Jasa Armada. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sunter and Jasa Armada.
Diversification Opportunities for PT Sunter and Jasa Armada
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between SNLK and Jasa is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PT Sunter Lakeside and Jasa Armada Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasa Armada Indonesia and PT Sunter 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 Sunter Lakeside are associated (or correlated) with Jasa Armada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasa Armada Indonesia has no effect on the direction of PT Sunter i.e., PT Sunter and Jasa Armada go up and down completely randomly.
Pair Corralation between PT Sunter and Jasa Armada
Assuming the 90 days trading horizon PT Sunter Lakeside is expected to under-perform the Jasa Armada. In addition to that, PT Sunter is 4.12 times more volatile than Jasa Armada Indonesia. It trades about -0.41 of its total potential returns per unit of risk. Jasa Armada Indonesia is currently generating about 0.0 per unit of volatility. If you would invest 27,200 in Jasa Armada Indonesia on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Jasa Armada Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sunter Lakeside vs. Jasa Armada Indonesia
Performance |
| Timeline |
| PT Sunter Lakeside |
| Jasa Armada Indonesia |
PT Sunter and Jasa Armada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sunter and Jasa Armada
The main advantage of trading using opposite PT Sunter and Jasa Armada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sunter position performs unexpectedly, Jasa Armada 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 Jasa Armada will offset losses from the drop in Jasa Armada's long position.| PT Sunter vs. Hotel Fitra International | PT Sunter vs. Jasa Armada Indonesia | PT Sunter vs. Cahayaputra Asa Keramik | PT Sunter vs. Campina Ice Cream |
| Jasa Armada vs. PT Indonesia Kendaraan | Jasa Armada vs. PP Presisi Tbk | Jasa Armada vs. Cikarang Listrindo Tbk | Jasa Armada vs. Pelita Samudera Shipping |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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