Correlation Between Saratoga Investama and Pt Pradiksi
Can any of the company-specific risk be diversified away by investing in both Saratoga Investama and Pt Pradiksi 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 Pt Pradiksi 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 Pt Pradiksi Gunatama, you can compare the effects of market volatilities on Saratoga Investama and Pt Pradiksi 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 Pt Pradiksi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investama and Pt Pradiksi.
Diversification Opportunities for Saratoga Investama and Pt Pradiksi
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saratoga and PGUN is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investama Sedaya and Pt Pradiksi Gunatama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pradiksi Gunatama 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 Pt Pradiksi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pradiksi Gunatama has no effect on the direction of Saratoga Investama i.e., Saratoga Investama and Pt Pradiksi go up and down completely randomly.
Pair Corralation between Saratoga Investama and Pt Pradiksi
If you would invest 42,400 in Pt Pradiksi Gunatama on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Pt Pradiksi Gunatama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saratoga Investama Sedaya vs. Pt Pradiksi Gunatama
Performance |
| Timeline |
| Saratoga Investama Sedaya |
| Pt Pradiksi Gunatama |
Saratoga Investama and Pt Pradiksi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investama and Pt Pradiksi
The main advantage of trading using opposite Saratoga Investama and Pt Pradiksi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investama position performs unexpectedly, Pt Pradiksi 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 Pt Pradiksi will offset losses from the drop in Pt Pradiksi'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 |
| Pt Pradiksi vs. Habco Trans Maritima | Pt Pradiksi vs. PT Cilacap Samudera | Pt Pradiksi vs. PT Sari Kreasi | Pt Pradiksi vs. Autopedia Sukses Lestari |
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 CEOs Directory module to screen CEOs from public companies around the world.
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