Correlation Between Damai Sejahtera and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Damai Sejahtera and PT Sunter 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 Damai Sejahtera and PT Sunter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damai Sejahtera Abadi and PT Sunter Lakeside, you can compare the effects of market volatilities on Damai Sejahtera and PT Sunter 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 Damai Sejahtera with a short position of PT Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damai Sejahtera and PT Sunter.
Diversification Opportunities for Damai Sejahtera and PT Sunter
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Damai and SNLK is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Damai Sejahtera Abadi and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside and Damai Sejahtera 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 Damai Sejahtera Abadi are associated (or correlated) with PT Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Damai Sejahtera i.e., Damai Sejahtera and PT Sunter go up and down completely randomly.
Pair Corralation between Damai Sejahtera and PT Sunter
Assuming the 90 days trading horizon Damai Sejahtera Abadi is expected to generate 1.64 times more return on investment than PT Sunter. However, Damai Sejahtera is 1.64 times more volatile than PT Sunter Lakeside. It trades about 0.08 of its potential returns per unit of risk. PT Sunter Lakeside is currently generating about -0.4 per unit of risk. If you would invest 30,000 in Damai Sejahtera Abadi on August 28, 2024 and sell it today you would earn a total of 1,400 from holding Damai Sejahtera Abadi or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Damai Sejahtera Abadi vs. PT Sunter Lakeside
Performance |
| Timeline |
| Damai Sejahtera Abadi |
| PT Sunter Lakeside |
Damai Sejahtera and PT Sunter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damai Sejahtera and PT Sunter
The main advantage of trading using opposite Damai Sejahtera and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damai Sejahtera position performs unexpectedly, PT Sunter 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 PT Sunter will offset losses from the drop in PT Sunter's long position.| Damai Sejahtera vs. PT Sunter Lakeside | Damai Sejahtera vs. Widodo Makmur Unggas | Damai Sejahtera vs. Trisula Textile Industries | Damai Sejahtera vs. Diagnos Laboratorium Utama |
| PT Sunter vs. Gaya Abadi Sempurna | PT Sunter vs. Damai Sejahtera Abadi | PT Sunter vs. Red Planet Indonesia | PT Sunter vs. PAM Mineral 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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