Correlation Between Saratoga Investama and Citra Putra
Can any of the company-specific risk be diversified away by investing in both Saratoga Investama and Citra Putra 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 Saratoga Investama and Citra Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saratoga Investama Sedaya and Citra Putra Realty, you can compare the effects of market volatilities on Saratoga Investama and Citra Putra 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 Saratoga Investama with a short position of Citra Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investama and Citra Putra.
Diversification Opportunities for Saratoga Investama and Citra Putra
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saratoga and Citra is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investama Sedaya and Citra Putra Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Putra Realty and Saratoga Investama 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 Saratoga Investama Sedaya are associated (or correlated) with Citra Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Putra Realty has no effect on the direction of Saratoga Investama i.e., Saratoga Investama and Citra Putra go up and down completely randomly.
Pair Corralation between Saratoga Investama and Citra Putra
Assuming the 90 days trading horizon Saratoga Investama Sedaya is expected to generate 0.77 times more return on investment than Citra Putra. However, Saratoga Investama Sedaya is 1.29 times less risky than Citra Putra. It trades about 0.04 of its potential returns per unit of risk. Citra Putra Realty is currently generating about 0.01 per unit of risk. If you would invest 154,705 in Saratoga Investama Sedaya on August 31, 2024 and sell it today you would earn a total of 57,295 from holding Saratoga Investama Sedaya or generate 37.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saratoga Investama Sedaya vs. Citra Putra Realty
Performance |
| Timeline |
| Saratoga Investama Sedaya |
| Citra Putra Realty |
Saratoga Investama and Citra Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investama and Citra Putra
The main advantage of trading using opposite Saratoga Investama and Citra Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investama position performs unexpectedly, Citra Putra 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 Citra Putra will offset losses from the drop in Citra Putra's long position.| Saratoga Investama vs. Elang Mahkota Teknologi | Saratoga Investama vs. Mitra Pinasthika Mustika | Saratoga Investama vs. Tower Bersama Infrastructure | Saratoga Investama vs. Merdeka Copper Gold |
| Citra Putra vs. Jasa Armada Indonesia | Citra Putra vs. Cahayaputra Asa Keramik | Citra Putra vs. Campina Ice Cream | Citra Putra vs. Integra Indocabinet 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 Stocks Directory module to find actively traded stocks across global markets.
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