Correlation Between Sejahteraraya Anugrahjaya and Bank Pan
Can any of the company-specific risk be diversified away by investing in both Sejahteraraya Anugrahjaya and Bank Pan 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 Bank Pan 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 Bank Pan Indonesia, you can compare the effects of market volatilities on Sejahteraraya Anugrahjaya and Bank Pan 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 Bank Pan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejahteraraya Anugrahjaya and Bank Pan.
Diversification Opportunities for Sejahteraraya Anugrahjaya and Bank Pan
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sejahteraraya and Bank is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sejahteraraya Anugrahjaya Tbk and Bank Pan Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Pan Indonesia 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 Bank Pan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Pan Indonesia has no effect on the direction of Sejahteraraya Anugrahjaya i.e., Sejahteraraya Anugrahjaya and Bank Pan go up and down completely randomly.
Pair Corralation between Sejahteraraya Anugrahjaya and Bank Pan
Assuming the 90 days trading horizon Sejahteraraya Anugrahjaya Tbk is expected to generate 1.18 times more return on investment than Bank Pan. However, Sejahteraraya Anugrahjaya is 1.18 times more volatile than Bank Pan Indonesia. It trades about -0.1 of its potential returns per unit of risk. Bank Pan Indonesia is currently generating about -0.15 per unit of risk. If you would invest 317,000 in Sejahteraraya Anugrahjaya Tbk on August 27, 2024 and sell it today you would lose (18,000) from holding Sejahteraraya Anugrahjaya Tbk or give up 5.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sejahteraraya Anugrahjaya Tbk vs. Bank Pan Indonesia
Performance |
| Timeline |
| Sejahteraraya Anugrahjaya |
| Bank Pan Indonesia |
Sejahteraraya Anugrahjaya and Bank Pan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sejahteraraya Anugrahjaya and Bank Pan
The main advantage of trading using opposite Sejahteraraya Anugrahjaya and Bank Pan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejahteraraya Anugrahjaya position performs unexpectedly, Bank Pan 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 Bank Pan will offset losses from the drop in Bank Pan'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 |
| Bank Pan vs. Paninvest Tbk | Bank Pan vs. Wahana Ottomitra Multiartha | Bank Pan vs. Lenox Pasifik Investama |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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