Correlation Between Sawit Sumbermas and Enseval Putra
Can any of the company-specific risk be diversified away by investing in both Sawit Sumbermas and Enseval Putra 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 Sawit Sumbermas and Enseval Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sawit Sumbermas Sarana and Enseval Putra Megatrading, you can compare the effects of market volatilities on Sawit Sumbermas and Enseval Putra 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 Sawit Sumbermas with a short position of Enseval Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sawit Sumbermas and Enseval Putra.
Diversification Opportunities for Sawit Sumbermas and Enseval Putra
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sawit and Enseval is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sawit Sumbermas Sarana and Enseval Putra Megatrading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enseval Putra Megatrading and Sawit Sumbermas 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 Sawit Sumbermas Sarana are associated (or correlated) with Enseval Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enseval Putra Megatrading has no effect on the direction of Sawit Sumbermas i.e., Sawit Sumbermas and Enseval Putra go up and down completely randomly.
Pair Corralation between Sawit Sumbermas and Enseval Putra
Assuming the 90 days trading horizon Sawit Sumbermas Sarana is expected to generate 3.08 times more return on investment than Enseval Putra. However, Sawit Sumbermas is 3.08 times more volatile than Enseval Putra Megatrading. It trades about 0.0 of its potential returns per unit of risk. Enseval Putra Megatrading is currently generating about -0.04 per unit of risk. If you would invest 122,500 in Sawit Sumbermas Sarana on September 12, 2024 and sell it today you would lose (18,000) from holding Sawit Sumbermas Sarana or give up 14.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sawit Sumbermas Sarana vs. Enseval Putra Megatrading
Performance |
| Timeline |
| Sawit Sumbermas Sarana |
| Enseval Putra Megatrading |
Sawit Sumbermas and Enseval Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sawit Sumbermas and Enseval Putra
The main advantage of trading using opposite Sawit Sumbermas and Enseval Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sawit Sumbermas position performs unexpectedly, Enseval Putra 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 Enseval Putra will offset losses from the drop in Enseval Putra's long position.| Sawit Sumbermas vs. Austindo Nusantara Jaya | Sawit Sumbermas vs. Garudafood Putra Putri | Sawit Sumbermas vs. Provident Agro Tbk | Sawit Sumbermas vs. Dharma Satya Nusantara |
| Enseval Putra vs. Mitra Keluarga Karyasehat | Enseval Putra vs. Siloam International Hospitals | Enseval Putra vs. Sumber Alfaria Trijaya | Enseval Putra 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |