Correlation Between Saratoga Investama and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Saratoga Investama and Paninvest Tbk 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 Paninvest Tbk 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 Paninvest Tbk, you can compare the effects of market volatilities on Saratoga Investama and Paninvest Tbk 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 Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investama and Paninvest Tbk.
Diversification Opportunities for Saratoga Investama and Paninvest Tbk
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saratoga and Paninvest is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investama Sedaya and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest Tbk 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 Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Saratoga Investama i.e., Saratoga Investama and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Saratoga Investama and Paninvest Tbk
Assuming the 90 days trading horizon Saratoga Investama Sedaya is expected to generate 1.52 times more return on investment than Paninvest Tbk. However, Saratoga Investama is 1.52 times more volatile than Paninvest Tbk. It trades about 0.1 of its potential returns per unit of risk. Paninvest Tbk is currently generating about 0.06 per unit of risk. If you would invest 148,500 in Saratoga Investama Sedaya on August 28, 2024 and sell it today you would earn a total of 74,500 from holding Saratoga Investama Sedaya or generate 50.17% 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. Paninvest Tbk
Performance |
| Timeline |
| Saratoga Investama Sedaya |
| Paninvest Tbk |
Saratoga Investama and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investama and Paninvest Tbk
The main advantage of trading using opposite Saratoga Investama and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investama position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk'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 |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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