Correlation Between Saratoga Investama and Sumber Tani
Can any of the company-specific risk be diversified away by investing in both Saratoga Investama and Sumber Tani 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 Sumber Tani 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 Sumber Tani Agung, you can compare the effects of market volatilities on Saratoga Investama and Sumber Tani 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 Sumber Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investama and Sumber Tani.
Diversification Opportunities for Saratoga Investama and Sumber Tani
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saratoga and Sumber is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investama Sedaya and Sumber Tani Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Tani Agung 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 Sumber Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Tani Agung has no effect on the direction of Saratoga Investama i.e., Saratoga Investama and Sumber Tani go up and down completely randomly.
Pair Corralation between Saratoga Investama and Sumber Tani
Assuming the 90 days trading horizon Saratoga Investama Sedaya is expected to generate 3.06 times more return on investment than Sumber Tani. However, Saratoga Investama is 3.06 times more volatile than Sumber Tani Agung. It trades about -0.01 of its potential returns per unit of risk. Sumber Tani Agung is currently generating about -0.26 per unit of risk. If you would invest 224,000 in Saratoga Investama Sedaya on August 27, 2024 and sell it today you would lose (5,000) from holding Saratoga Investama Sedaya or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saratoga Investama Sedaya vs. Sumber Tani Agung
Performance |
| Timeline |
| Saratoga Investama Sedaya |
| Sumber Tani Agung |
Saratoga Investama and Sumber Tani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investama and Sumber Tani
The main advantage of trading using opposite Saratoga Investama and Sumber Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investama position performs unexpectedly, Sumber Tani 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 Sumber Tani will offset losses from the drop in Sumber Tani'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 |
| Sumber Tani vs. Dharma Satya Nusantara | Sumber Tani vs. Saratoga Investama Sedaya | Sumber Tani vs. Surya Esa Perkasa | Sumber Tani 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |