Correlation Between Saratoga Investama and Era Mandiri
Can any of the company-specific risk be diversified away by investing in both Saratoga Investama and Era Mandiri 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 Era Mandiri 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 Era Mandiri Cemerlang, you can compare the effects of market volatilities on Saratoga Investama and Era Mandiri 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 Era Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investama and Era Mandiri.
Diversification Opportunities for Saratoga Investama and Era Mandiri
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Saratoga and Era is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investama Sedaya and Era Mandiri Cemerlang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Mandiri Cemerlang 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 Era Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Mandiri Cemerlang has no effect on the direction of Saratoga Investama i.e., Saratoga Investama and Era Mandiri go up and down completely randomly.
Pair Corralation between Saratoga Investama and Era Mandiri
Assuming the 90 days trading horizon Saratoga Investama Sedaya is expected to generate 0.87 times more return on investment than Era Mandiri. However, Saratoga Investama Sedaya is 1.16 times less risky than Era Mandiri. It trades about 0.07 of its potential returns per unit of risk. Era Mandiri Cemerlang is currently generating about -0.05 per unit of risk. If you would invest 161,603 in Saratoga Investama Sedaya on September 12, 2024 and sell it today you would earn a total of 105,397 from holding Saratoga Investama Sedaya or generate 65.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saratoga Investama Sedaya vs. Era Mandiri Cemerlang
Performance |
| Timeline |
| Saratoga Investama Sedaya |
| Era Mandiri Cemerlang |
Saratoga Investama and Era Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investama and Era Mandiri
The main advantage of trading using opposite Saratoga Investama and Era Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investama position performs unexpectedly, Era Mandiri 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 Era Mandiri will offset losses from the drop in Era Mandiri's long position.| Saratoga Investama vs. Paninvest Tbk | Saratoga Investama vs. Maskapai Reasuransi Indonesia | Saratoga Investama vs. Panin Sekuritas Tbk | Saratoga Investama vs. Wahana Ottomitra Multiartha |
| Era Mandiri vs. Putra Rajawali Kencana | Era Mandiri vs. Sinergi Inti Plastindo | Era Mandiri vs. Karya Bersama Anugerah | Era Mandiri vs. Jasnita Telekomindo 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |