Correlation Between PT Sunter and Damai Sejahtera
Can any of the company-specific risk be diversified away by investing in both PT Sunter and Damai Sejahtera 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 Damai Sejahtera 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 Damai Sejahtera Abadi, you can compare the effects of market volatilities on PT Sunter and Damai Sejahtera 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 Damai Sejahtera. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sunter and Damai Sejahtera.
Diversification Opportunities for PT Sunter and Damai Sejahtera
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SNLK and Damai is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PT Sunter Lakeside and Damai Sejahtera Abadi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damai Sejahtera Abadi 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 Damai Sejahtera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Damai Sejahtera Abadi has no effect on the direction of PT Sunter i.e., PT Sunter and Damai Sejahtera go up and down completely randomly.
Pair Corralation between PT Sunter and Damai Sejahtera
Assuming the 90 days trading horizon PT Sunter Lakeside is expected to under-perform the Damai Sejahtera. But the stock apears to be less risky and, when comparing its historical volatility, PT Sunter Lakeside is 1.56 times less risky than Damai Sejahtera. The stock trades about -0.47 of its potential returns per unit of risk. The Damai Sejahtera Abadi is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 27,600 in Damai Sejahtera Abadi on September 1, 2024 and sell it today you would earn a total of 3,200 from holding Damai Sejahtera Abadi or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sunter Lakeside vs. Damai Sejahtera Abadi
Performance |
| Timeline |
| PT Sunter Lakeside |
| Damai Sejahtera Abadi |
PT Sunter and Damai Sejahtera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sunter and Damai Sejahtera
The main advantage of trading using opposite PT Sunter and Damai Sejahtera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sunter position performs unexpectedly, Damai Sejahtera 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 Damai Sejahtera will offset losses from the drop in Damai Sejahtera'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 |
| Damai Sejahtera vs. PT Sunter Lakeside | Damai Sejahtera vs. Trisula Textile Industries | Damai Sejahtera vs. Diagnos Laboratorium Utama | Damai Sejahtera vs. Bank Net 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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