Correlation Between PT Sarana and Akr Corporindo
Can any of the company-specific risk be diversified away by investing in both PT Sarana and Akr Corporindo 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 PT Sarana and Akr Corporindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sarana Menara and Akr Corporindo Tbk, you can compare the effects of market volatilities on PT Sarana and Akr Corporindo 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 PT Sarana with a short position of Akr Corporindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sarana and Akr Corporindo.
Diversification Opportunities for PT Sarana and Akr Corporindo
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TOWR and Akr is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding PT Sarana Menara and Akr Corporindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akr Corporindo Tbk and PT Sarana 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 PT Sarana Menara are associated (or correlated) with Akr Corporindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akr Corporindo Tbk has no effect on the direction of PT Sarana i.e., PT Sarana and Akr Corporindo go up and down completely randomly.
Pair Corralation between PT Sarana and Akr Corporindo
Assuming the 90 days trading horizon PT Sarana Menara is expected to generate 1.02 times more return on investment than Akr Corporindo. However, PT Sarana is 1.02 times more volatile than Akr Corporindo Tbk. It trades about 0.07 of its potential returns per unit of risk. Akr Corporindo Tbk is currently generating about -0.06 per unit of risk. If you would invest 63,451 in PT Sarana Menara on November 3, 2024 and sell it today you would earn a total of 2,549 from holding PT Sarana Menara or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Sarana Menara vs. Akr Corporindo Tbk
Performance |
| Timeline |
| PT Sarana Menara |
| Akr Corporindo Tbk |
PT Sarana and Akr Corporindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sarana and Akr Corporindo
The main advantage of trading using opposite PT Sarana and Akr Corporindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sarana position performs unexpectedly, Akr Corporindo 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 Akr Corporindo will offset losses from the drop in Akr Corporindo's long position.| PT Sarana vs. Tower Bersama Infrastructure | PT Sarana vs. Merdeka Copper Gold | PT Sarana vs. XL Axiata Tbk | PT Sarana vs. Japfa Comfeed Indonesia |
| Akr Corporindo vs. Charoen Pokphand Indonesia | Akr Corporindo vs. Indocement Tunggal Prakarsa | Akr Corporindo vs. Bumi Serpong Damai | Akr Corporindo vs. Jasa Marga Tbk |
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
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |