Correlation Between Sejahteraraya Anugrahjaya and Graha Layar
Can any of the company-specific risk be diversified away by investing in both Sejahteraraya Anugrahjaya and Graha Layar 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 Sejahteraraya Anugrahjaya and Graha Layar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sejahteraraya Anugrahjaya Tbk and Graha Layar Prima, you can compare the effects of market volatilities on Sejahteraraya Anugrahjaya and Graha Layar 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 Sejahteraraya Anugrahjaya with a short position of Graha Layar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejahteraraya Anugrahjaya and Graha Layar.
Diversification Opportunities for Sejahteraraya Anugrahjaya and Graha Layar
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sejahteraraya and Graha is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sejahteraraya Anugrahjaya Tbk and Graha Layar Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Layar Prima and Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya Tbk are associated (or correlated) with Graha Layar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Layar Prima has no effect on the direction of Sejahteraraya Anugrahjaya i.e., Sejahteraraya Anugrahjaya and Graha Layar go up and down completely randomly.
Pair Corralation between Sejahteraraya Anugrahjaya and Graha Layar
Assuming the 90 days trading horizon Sejahteraraya Anugrahjaya Tbk is expected to generate 0.92 times more return on investment than Graha Layar. However, Sejahteraraya Anugrahjaya Tbk is 1.09 times less risky than Graha Layar. It trades about 0.09 of its potential returns per unit of risk. Graha Layar Prima is currently generating about 0.03 per unit of risk. If you would invest 70,500 in Sejahteraraya Anugrahjaya Tbk on August 27, 2024 and sell it today you would earn a total of 228,500 from holding Sejahteraraya Anugrahjaya Tbk or generate 324.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Sejahteraraya Anugrahjaya Tbk vs. Graha Layar Prima
Performance |
| Timeline |
| Sejahteraraya Anugrahjaya |
| Graha Layar Prima |
Sejahteraraya Anugrahjaya and Graha Layar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sejahteraraya Anugrahjaya and Graha Layar
The main advantage of trading using opposite Sejahteraraya Anugrahjaya and Graha Layar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejahteraraya Anugrahjaya position performs unexpectedly, Graha Layar 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 Graha Layar will offset losses from the drop in Graha Layar's long position.| Sejahteraraya Anugrahjaya vs. Astra Graphia Tbk | Sejahteraraya Anugrahjaya vs. Hexindo Adiperkasa Tbk | Sejahteraraya Anugrahjaya vs. Lautan Luas Tbk | Sejahteraraya Anugrahjaya vs. Citra Marga Nusaphala |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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