Correlation Between PT Sunter and Panca Anugrah
Can any of the company-specific risk be diversified away by investing in both PT Sunter and Panca Anugrah 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 Panca Anugrah 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 Panca Anugrah Wisesa, you can compare the effects of market volatilities on PT Sunter and Panca Anugrah 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 Panca Anugrah. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sunter and Panca Anugrah.
Diversification Opportunities for PT Sunter and Panca Anugrah
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SNLK and Panca is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding PT Sunter Lakeside and Panca Anugrah Wisesa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panca Anugrah Wisesa 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 Panca Anugrah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panca Anugrah Wisesa has no effect on the direction of PT Sunter i.e., PT Sunter and Panca Anugrah go up and down completely randomly.
Pair Corralation between PT Sunter and Panca Anugrah
Assuming the 90 days trading horizon PT Sunter Lakeside is expected to generate 1.0 times more return on investment than Panca Anugrah. However, PT Sunter is 1.0 times more volatile than Panca Anugrah Wisesa. It trades about 0.4 of its potential returns per unit of risk. Panca Anugrah Wisesa is currently generating about 0.27 per unit of risk. If you would invest 58,000 in PT Sunter Lakeside on November 27, 2024 and sell it today you would earn a total of 18,500 from holding PT Sunter Lakeside or generate 31.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sunter Lakeside vs. Panca Anugrah Wisesa
Performance |
| Timeline |
| PT Sunter Lakeside |
| Panca Anugrah Wisesa |
PT Sunter and Panca Anugrah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sunter and Panca Anugrah
The main advantage of trading using opposite PT Sunter and Panca Anugrah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sunter position performs unexpectedly, Panca Anugrah 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 Panca Anugrah will offset losses from the drop in Panca Anugrah's long position.| PT Sunter vs. Gaya Abadi Sempurna | PT Sunter vs. Damai Sejahtera Abadi | PT Sunter vs. Red Planet Indonesia | PT Sunter vs. PAM Mineral Tbk |
| Panca Anugrah vs. Cisarua Mountain Dairy | Panca Anugrah vs. Triputra Agro Persada | Panca Anugrah vs. Wahana Inti MakmurTbk | Panca Anugrah vs. PT Hasnur Internasional |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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