Correlation Between Sumber Tani and Net Visi
Can any of the company-specific risk be diversified away by investing in both Sumber Tani and Net Visi 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 Sumber Tani and Net Visi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumber Tani Agung and Net Visi Media, you can compare the effects of market volatilities on Sumber Tani and Net Visi 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 Sumber Tani with a short position of Net Visi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Tani and Net Visi.
Diversification Opportunities for Sumber Tani and Net Visi
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sumber and Net is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Tani Agung and Net Visi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Net Visi Media and Sumber Tani 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 Sumber Tani Agung are associated (or correlated) with Net Visi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Net Visi Media has no effect on the direction of Sumber Tani i.e., Sumber Tani and Net Visi go up and down completely randomly.
Pair Corralation between Sumber Tani and Net Visi
Assuming the 90 days trading horizon Sumber Tani Agung is expected to under-perform the Net Visi. But the stock apears to be less risky and, when comparing its historical volatility, Sumber Tani Agung is 3.45 times less risky than Net Visi. The stock trades about -0.27 of its potential returns per unit of risk. The Net Visi Media is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 14,500 in Net Visi Media on August 27, 2024 and sell it today you would lose (1,000.00) from holding Net Visi Media or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sumber Tani Agung vs. Net Visi Media
Performance |
| Timeline |
| Sumber Tani Agung |
| Net Visi Media |
Sumber Tani and Net Visi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Tani and Net Visi
The main advantage of trading using opposite Sumber Tani and Net Visi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Tani position performs unexpectedly, Net Visi 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 Net Visi will offset losses from the drop in Net Visi's long position.| Sumber Tani vs. Dharma Satya Nusantara | Sumber Tani vs. Saratoga Investama Sedaya | Sumber Tani vs. Surya Esa Perkasa | Sumber Tani vs. Elang Mahkota Teknologi |
| Net Visi vs. Adaro Minerals Indonesia | Net Visi vs. Dayamitra Telekomunikasi PT | Net Visi vs. MNC Studios International | Net Visi vs. MNC Vision Networks |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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