Correlation Between Voksel Electric and Sejahteraraya Anugrahjaya
Can any of the company-specific risk be diversified away by investing in both Voksel Electric and Sejahteraraya Anugrahjaya 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 Voksel Electric and Sejahteraraya Anugrahjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voksel Electric Tbk and Sejahteraraya Anugrahjaya Tbk, you can compare the effects of market volatilities on Voksel Electric and Sejahteraraya Anugrahjaya 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 Voksel Electric with a short position of Sejahteraraya Anugrahjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voksel Electric and Sejahteraraya Anugrahjaya.
Diversification Opportunities for Voksel Electric and Sejahteraraya Anugrahjaya
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Voksel and Sejahteraraya is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Voksel Electric Tbk and Sejahteraraya Anugrahjaya Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahteraraya Anugrahjaya and Voksel Electric 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 Voksel Electric Tbk are associated (or correlated) with Sejahteraraya Anugrahjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejahteraraya Anugrahjaya has no effect on the direction of Voksel Electric i.e., Voksel Electric and Sejahteraraya Anugrahjaya go up and down completely randomly.
Pair Corralation between Voksel Electric and Sejahteraraya Anugrahjaya
Assuming the 90 days trading horizon Voksel Electric Tbk is expected to under-perform the Sejahteraraya Anugrahjaya. But the stock apears to be less risky and, when comparing its historical volatility, Voksel Electric Tbk is 1.18 times less risky than Sejahteraraya Anugrahjaya. The stock trades about -0.1 of its potential returns per unit of risk. The Sejahteraraya Anugrahjaya Tbk is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 236,000 in Sejahteraraya Anugrahjaya Tbk on December 1, 2024 and sell it today you would earn a total of 47,000 from holding Sejahteraraya Anugrahjaya Tbk or generate 19.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voksel Electric Tbk vs. Sejahteraraya Anugrahjaya Tbk
Performance |
| Timeline |
| Voksel Electric Tbk |
| Sejahteraraya Anugrahjaya |
Voksel Electric and Sejahteraraya Anugrahjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voksel Electric and Sejahteraraya Anugrahjaya
The main advantage of trading using opposite Voksel Electric and Sejahteraraya Anugrahjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voksel Electric position performs unexpectedly, Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya will offset losses from the drop in Sejahteraraya Anugrahjaya's long position.| Voksel Electric vs. Supreme Cable Manufacturing | Voksel Electric vs. Kabelindo Murni Tbk | Voksel Electric vs. Tifico Fiber Indonesia | Voksel Electric vs. Trias Sentosa 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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