Correlation Between Saratoga Investama and Wahana Inti
Can any of the company-specific risk be diversified away by investing in both Saratoga Investama and Wahana Inti 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 Wahana Inti 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 Wahana Inti MakmurTbk, you can compare the effects of market volatilities on Saratoga Investama and Wahana Inti 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 Wahana Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investama and Wahana Inti.
Diversification Opportunities for Saratoga Investama and Wahana Inti
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Saratoga and Wahana is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investama Sedaya and Wahana Inti MakmurTbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Inti MakmurTbk 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 Wahana Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Inti MakmurTbk has no effect on the direction of Saratoga Investama i.e., Saratoga Investama and Wahana Inti go up and down completely randomly.
Pair Corralation between Saratoga Investama and Wahana Inti
Assuming the 90 days trading horizon Saratoga Investama Sedaya is expected to generate 0.99 times more return on investment than Wahana Inti. However, Saratoga Investama Sedaya is 1.01 times less risky than Wahana Inti. It trades about -0.01 of its potential returns per unit of risk. Wahana Inti MakmurTbk is currently generating about -0.07 per unit of risk. If you would invest 232,000 in Saratoga Investama Sedaya on September 3, 2024 and sell it today you would lose (20,000) from holding Saratoga Investama Sedaya or give up 8.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saratoga Investama Sedaya vs. Wahana Inti MakmurTbk
Performance |
| Timeline |
| Saratoga Investama Sedaya |
| Wahana Inti MakmurTbk |
Saratoga Investama and Wahana Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investama and Wahana Inti
The main advantage of trading using opposite Saratoga Investama and Wahana Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investama position performs unexpectedly, Wahana Inti 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 Wahana Inti will offset losses from the drop in Wahana Inti'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 |
| Wahana Inti vs. Dharma Satya Nusantara | Wahana Inti vs. Saratoga Investama Sedaya | Wahana Inti vs. Surya Esa Perkasa | Wahana Inti vs. Elang Mahkota Teknologi |
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.
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