Correlation Between Sunson Textile and PT Buana
Can any of the company-specific risk be diversified away by investing in both Sunson Textile and PT Buana 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 Sunson Textile and PT Buana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunson Textile Manufacturer and PT Buana Artha, you can compare the effects of market volatilities on Sunson Textile and PT Buana 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 Sunson Textile with a short position of PT Buana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunson Textile and PT Buana.
Diversification Opportunities for Sunson Textile and PT Buana
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunson and STAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunson Textile Manufacturer and PT Buana Artha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Buana Artha and Sunson Textile 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 Sunson Textile Manufacturer are associated (or correlated) with PT Buana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Buana Artha has no effect on the direction of Sunson Textile i.e., Sunson Textile and PT Buana go up and down completely randomly.
Pair Corralation between Sunson Textile and PT Buana
If you would invest 5,000 in PT Buana Artha on December 1, 2024 and sell it today you would earn a total of 0.00 from holding PT Buana Artha or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunson Textile Manufacturer vs. PT Buana Artha
Performance |
| Timeline |
| Sunson Textile Manuf |
| PT Buana Artha |
Sunson Textile and PT Buana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunson Textile and PT Buana
The main advantage of trading using opposite Sunson Textile and PT Buana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunson Textile position performs unexpectedly, PT Buana 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 Buana will offset losses from the drop in PT Buana's long position.| Sunson Textile vs. Tifico Fiber Indonesia | Sunson Textile vs. Ricky Putra Globalindo | Sunson Textile vs. Supreme Cable Manufacturing | Sunson Textile vs. Voksel Electric Tbk |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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