Correlation Between Sejahteraraya Anugrahjaya and Petrosea Tbk
Can any of the company-specific risk be diversified away by investing in both Sejahteraraya Anugrahjaya and Petrosea Tbk 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 Petrosea Tbk 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 Petrosea Tbk, you can compare the effects of market volatilities on Sejahteraraya Anugrahjaya and Petrosea Tbk 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 Petrosea Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejahteraraya Anugrahjaya and Petrosea Tbk.
Diversification Opportunities for Sejahteraraya Anugrahjaya and Petrosea Tbk
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sejahteraraya and Petrosea is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sejahteraraya Anugrahjaya Tbk and Petrosea Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrosea Tbk 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 Petrosea Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrosea Tbk has no effect on the direction of Sejahteraraya Anugrahjaya i.e., Sejahteraraya Anugrahjaya and Petrosea Tbk go up and down completely randomly.
Pair Corralation between Sejahteraraya Anugrahjaya and Petrosea Tbk
Assuming the 90 days trading horizon Sejahteraraya Anugrahjaya Tbk is expected to under-perform the Petrosea Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Sejahteraraya Anugrahjaya Tbk is 1.22 times less risky than Petrosea Tbk. The stock trades about -0.1 of its potential returns per unit of risk. The Petrosea Tbk is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,630,000 in Petrosea Tbk on August 27, 2024 and sell it today you would earn a total of 257,500 from holding Petrosea Tbk or generate 15.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sejahteraraya Anugrahjaya Tbk vs. Petrosea Tbk
Performance |
| Timeline |
| Sejahteraraya Anugrahjaya |
| Petrosea Tbk |
Sejahteraraya Anugrahjaya and Petrosea Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sejahteraraya Anugrahjaya and Petrosea Tbk
The main advantage of trading using opposite Sejahteraraya Anugrahjaya and Petrosea Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejahteraraya Anugrahjaya position performs unexpectedly, Petrosea Tbk 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 Petrosea Tbk will offset losses from the drop in Petrosea Tbk'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 |
| Petrosea Tbk vs. Indika Energy Tbk | Petrosea Tbk vs. Harum Energy Tbk | Petrosea Tbk vs. Indo Tambangraya Megah | Petrosea Tbk vs. Gajah Tunggal Tbk |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |