Correlation Between Sumber Tani and Palma Serasih
Can any of the company-specific risk be diversified away by investing in both Sumber Tani 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 Sumber Tani and Palma Serasih 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 Palma Serasih PT, you can compare the effects of market volatilities on Sumber Tani 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 Sumber Tani with a short position of Palma Serasih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Tani and Palma Serasih.
Diversification Opportunities for Sumber Tani and Palma Serasih
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sumber and Palma is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Tani Agung 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 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 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 Sumber Tani i.e., Sumber Tani and Palma Serasih go up and down completely randomly.
Pair Corralation between Sumber Tani and Palma Serasih
Assuming the 90 days trading horizon Sumber Tani is expected to generate 3.1 times less return on investment than Palma Serasih. But when comparing it to its historical volatility, Sumber Tani Agung is 2.53 times less risky than Palma Serasih. It trades about 0.09 of its potential returns per unit of risk. Palma Serasih PT is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 19,100 in Palma Serasih PT on November 5, 2024 and sell it today you would earn a total of 700.00 from holding Palma Serasih PT or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sumber Tani Agung vs. Palma Serasih PT
Performance |
| Timeline |
| Sumber Tani Agung |
| Palma Serasih PT |
Sumber Tani and Palma Serasih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Tani and Palma Serasih
The main advantage of trading using opposite Sumber Tani and Palma Serasih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Tani 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.| Sumber Tani vs. Triputra Agro Persada | Sumber Tani vs. Dayamitra Telekomunikasi PT | Sumber Tani vs. RMK Energy PT | Sumber Tani vs. Dharma Satya Nusantara |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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