Correlation Between Saratoga Investama and Palma Serasih
Can any of the company-specific risk be diversified away by investing in both Saratoga Investama and Palma Serasih 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 Palma Serasih 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 Palma Serasih PT, you can compare the effects of market volatilities on Saratoga Investama and Palma Serasih 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 Palma Serasih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investama and Palma Serasih.
Diversification Opportunities for Saratoga Investama and Palma Serasih
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saratoga and Palma is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investama Sedaya and Palma Serasih PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palma Serasih PT 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 Palma Serasih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palma Serasih PT has no effect on the direction of Saratoga Investama i.e., Saratoga Investama and Palma Serasih go up and down completely randomly.
Pair Corralation between Saratoga Investama and Palma Serasih
Assuming the 90 days trading horizon Saratoga Investama Sedaya is expected to under-perform the Palma Serasih. In addition to that, Saratoga Investama is 1.63 times more volatile than Palma Serasih PT. It trades about -0.05 of its total potential returns per unit of risk. Palma Serasih PT is currently generating about 0.12 per unit of volatility. If you would invest 16,100 in Palma Serasih PT on October 26, 2024 and sell it today you would earn a total of 3,000 from holding Palma Serasih PT or generate 18.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Saratoga Investama Sedaya vs. Palma Serasih PT
Performance |
| Timeline |
| Saratoga Investama Sedaya |
| Palma Serasih PT |
Saratoga Investama and Palma Serasih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investama and Palma Serasih
The main advantage of trading using opposite Saratoga Investama and Palma Serasih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investama position performs unexpectedly, Palma Serasih 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 Palma Serasih will offset losses from the drop in Palma Serasih'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 |
| Palma Serasih vs. Mahkota Group Tbk | Palma Serasih vs. Provident Agro Tbk | Palma Serasih vs. Putra Mandiri Jembar | Palma Serasih vs. Cisadane Sawit Raya |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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