Correlation Between Sumber Tani and Teladan Prima
Can any of the company-specific risk be diversified away by investing in both Sumber Tani and Teladan Prima 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 Teladan Prima 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 Teladan Prima Agro, you can compare the effects of market volatilities on Sumber Tani and Teladan Prima 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 Teladan Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Tani and Teladan Prima.
Diversification Opportunities for Sumber Tani and Teladan Prima
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sumber and Teladan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Tani Agung and Teladan Prima Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladan Prima Agro 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 Teladan Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladan Prima Agro has no effect on the direction of Sumber Tani i.e., Sumber Tani and Teladan Prima go up and down completely randomly.
Pair Corralation between Sumber Tani and Teladan Prima
Assuming the 90 days trading horizon Sumber Tani Agung is expected to generate 1.14 times more return on investment than Teladan Prima. However, Sumber Tani is 1.14 times more volatile than Teladan Prima Agro. It trades about -0.27 of its potential returns per unit of risk. Teladan Prima Agro is currently generating about -0.38 per unit of risk. If you would invest 90,500 in Sumber Tani Agung on August 27, 2024 and sell it today you would lose (7,000) from holding Sumber Tani Agung or give up 7.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sumber Tani Agung vs. Teladan Prima Agro
Performance |
| Timeline |
| Sumber Tani Agung |
| Teladan Prima Agro |
Sumber Tani and Teladan Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Tani and Teladan Prima
The main advantage of trading using opposite Sumber Tani and Teladan Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Tani position performs unexpectedly, Teladan Prima 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 Teladan Prima will offset losses from the drop in Teladan Prima'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 |
| Teladan Prima vs. Sumber Tani Agung | Teladan Prima vs. Wir Asia Tbk | Teladan Prima vs. Triputra Agro Persada | Teladan Prima vs. Net Visi Media |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |