Correlation Between PT Sunter and Saraswanti Anugerah
Can any of the company-specific risk be diversified away by investing in both PT Sunter 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 PT Sunter and Saraswanti Anugerah 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 Saraswanti Anugerah Makmur, you can compare the effects of market volatilities on PT Sunter 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 PT Sunter with a short position of Saraswanti Anugerah. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sunter and Saraswanti Anugerah.
Diversification Opportunities for PT Sunter and Saraswanti Anugerah
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SNLK and Saraswanti is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PT Sunter Lakeside and Saraswanti Anugerah Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saraswanti Anugerah 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 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 PT Sunter i.e., PT Sunter and Saraswanti Anugerah go up and down completely randomly.
Pair Corralation between PT Sunter and Saraswanti Anugerah
Assuming the 90 days trading horizon PT Sunter Lakeside is expected to generate 2.68 times more return on investment than Saraswanti Anugerah. However, PT Sunter is 2.68 times more volatile than Saraswanti Anugerah Makmur. It trades about 0.01 of its potential returns per unit of risk. Saraswanti Anugerah Makmur is currently generating about 0.03 per unit of risk. If you would invest 108,500 in PT Sunter Lakeside on September 12, 2024 and sell it today you would lose (16,000) from holding PT Sunter Lakeside or give up 14.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sunter Lakeside vs. Saraswanti Anugerah Makmur
Performance |
| Timeline |
| PT Sunter Lakeside |
| Saraswanti Anugerah |
PT Sunter and Saraswanti Anugerah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sunter and Saraswanti Anugerah
The main advantage of trading using opposite PT Sunter and Saraswanti Anugerah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sunter 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.| PT Sunter vs. Gaya Abadi Sempurna | PT Sunter vs. Damai Sejahtera Abadi | PT Sunter vs. Red Planet Indonesia | PT Sunter vs. PAM Mineral Tbk |
| 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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