Correlation Between Lancartama Sejati and Sejahtera Bintang
Can any of the company-specific risk be diversified away by investing in both Lancartama Sejati and Sejahtera Bintang 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 Lancartama Sejati and Sejahtera Bintang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lancartama Sejati Tbk and Sejahtera Bintang Abadi, you can compare the effects of market volatilities on Lancartama Sejati and Sejahtera Bintang 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 Lancartama Sejati with a short position of Sejahtera Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lancartama Sejati and Sejahtera Bintang.
Diversification Opportunities for Lancartama Sejati and Sejahtera Bintang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lancartama and Sejahtera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lancartama Sejati Tbk and Sejahtera Bintang Abadi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahtera Bintang Abadi and Lancartama Sejati 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 Lancartama Sejati Tbk are associated (or correlated) with Sejahtera Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejahtera Bintang Abadi has no effect on the direction of Lancartama Sejati i.e., Lancartama Sejati and Sejahtera Bintang go up and down completely randomly.
Pair Corralation between Lancartama Sejati and Sejahtera Bintang
Assuming the 90 days trading horizon Lancartama Sejati is expected to generate 3.08 times less return on investment than Sejahtera Bintang. But when comparing it to its historical volatility, Lancartama Sejati Tbk is 3.95 times less risky than Sejahtera Bintang. It trades about 0.09 of its potential returns per unit of risk. Sejahtera Bintang Abadi is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Sejahtera Bintang Abadi on September 1, 2024 and sell it today you would lose (100.00) from holding Sejahtera Bintang Abadi or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lancartama Sejati Tbk vs. Sejahtera Bintang Abadi
Performance |
| Timeline |
| Lancartama Sejati Tbk |
| Sejahtera Bintang Abadi |
Lancartama Sejati and Sejahtera Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lancartama Sejati and Sejahtera Bintang
The main advantage of trading using opposite Lancartama Sejati and Sejahtera Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lancartama Sejati position performs unexpectedly, Sejahtera Bintang 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 Sejahtera Bintang will offset losses from the drop in Sejahtera Bintang's long position.| Lancartama Sejati vs. Perintis Triniti Properti | Lancartama Sejati vs. Diamond Citra Propertindo | Lancartama Sejati vs. Karya Bersama Anugerah | Lancartama Sejati vs. Pratama Widya Tbk |
| Sejahtera Bintang vs. Eratex Djaja Tbk | Sejahtera Bintang vs. Ever Shine Textile | Sejahtera Bintang vs. Argo Pantes Tbk | Sejahtera Bintang vs. Primarindo Asia Infrastructure |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |