Correlation Between Guna Timur and Satria Antaran
Can any of the company-specific risk be diversified away by investing in both Guna Timur and Satria Antaran 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 Guna Timur and Satria Antaran into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guna Timur Raya and Satria Antaran Prima, you can compare the effects of market volatilities on Guna Timur and Satria Antaran 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 Guna Timur with a short position of Satria Antaran. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guna Timur and Satria Antaran.
Diversification Opportunities for Guna Timur and Satria Antaran
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guna and Satria is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guna Timur Raya and Satria Antaran Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satria Antaran Prima and Guna Timur 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 Guna Timur Raya are associated (or correlated) with Satria Antaran. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satria Antaran Prima has no effect on the direction of Guna Timur i.e., Guna Timur and Satria Antaran go up and down completely randomly.
Pair Corralation between Guna Timur and Satria Antaran
Assuming the 90 days trading horizon Guna Timur is expected to generate 2.62 times less return on investment than Satria Antaran. But when comparing it to its historical volatility, Guna Timur Raya is 1.7 times less risky than Satria Antaran. It trades about 0.03 of its potential returns per unit of risk. Satria Antaran Prima is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 86,000 in Satria Antaran Prima on November 3, 2024 and sell it today you would earn a total of 25,000 from holding Satria Antaran Prima or generate 29.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guna Timur Raya vs. Satria Antaran Prima
Performance |
| Timeline |
| Guna Timur Raya |
| Satria Antaran Prima |
Guna Timur and Satria Antaran Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guna Timur and Satria Antaran
The main advantage of trading using opposite Guna Timur and Satria Antaran positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guna Timur position performs unexpectedly, Satria Antaran 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 Satria Antaran will offset losses from the drop in Satria Antaran's long position.| Guna Timur vs. Sriwahana | Guna Timur vs. PT Trimuda Nuansa | Guna Timur vs. Yelooo Integra Datanet | Guna Timur vs. Transcoal Pacific Tbk |
| Satria Antaran vs. PT Trimuda Nuansa | Satria Antaran vs. Guna Timur Raya | Satria Antaran vs. Pelayaran Nelly Dwi | Satria Antaran vs. Krida Jaringan Nusantara |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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