Correlation Between Sejahteraraya Anugrahjaya and Voksel Electric
Can any of the company-specific risk be diversified away by investing in both Sejahteraraya Anugrahjaya and Voksel Electric 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 Voksel Electric 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 Voksel Electric Tbk, you can compare the effects of market volatilities on Sejahteraraya Anugrahjaya and Voksel Electric 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 Voksel Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejahteraraya Anugrahjaya and Voksel Electric.
Diversification Opportunities for Sejahteraraya Anugrahjaya and Voksel Electric
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sejahteraraya and Voksel is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sejahteraraya Anugrahjaya Tbk and Voksel Electric Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voksel Electric 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 Voksel Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voksel Electric Tbk has no effect on the direction of Sejahteraraya Anugrahjaya i.e., Sejahteraraya Anugrahjaya and Voksel Electric go up and down completely randomly.
Pair Corralation between Sejahteraraya Anugrahjaya and Voksel Electric
Assuming the 90 days trading horizon Sejahteraraya Anugrahjaya Tbk is expected to generate 1.07 times more return on investment than Voksel Electric. However, Sejahteraraya Anugrahjaya is 1.07 times more volatile than Voksel Electric Tbk. It trades about 0.1 of its potential returns per unit of risk. Voksel Electric Tbk is currently generating about 0.06 per unit of risk. If you would invest 59,500 in Sejahteraraya Anugrahjaya Tbk on September 3, 2024 and sell it today you would earn a total of 228,500 from holding Sejahteraraya Anugrahjaya Tbk or generate 384.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Sejahteraraya Anugrahjaya Tbk vs. Voksel Electric Tbk
Performance |
| Timeline |
| Sejahteraraya Anugrahjaya |
| Voksel Electric Tbk |
Sejahteraraya Anugrahjaya and Voksel Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sejahteraraya Anugrahjaya and Voksel Electric
The main advantage of trading using opposite Sejahteraraya Anugrahjaya and Voksel Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejahteraraya Anugrahjaya position performs unexpectedly, Voksel Electric 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 Voksel Electric will offset losses from the drop in Voksel Electric's long position.The idea behind Sejahteraraya Anugrahjaya Tbk and Voksel Electric Tbk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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