Correlation Between Sumber Alfaria and Sejahteraraya Anugrahjaya
Can any of the company-specific risk be diversified away by investing in both Sumber Alfaria 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 Sumber Alfaria and Sejahteraraya Anugrahjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumber Alfaria Trijaya and Sejahteraraya Anugrahjaya Tbk, you can compare the effects of market volatilities on Sumber Alfaria 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 Sumber Alfaria with a short position of Sejahteraraya Anugrahjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Alfaria and Sejahteraraya Anugrahjaya.
Diversification Opportunities for Sumber Alfaria and Sejahteraraya Anugrahjaya
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sumber and Sejahteraraya is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Alfaria Trijaya and Sejahteraraya Anugrahjaya Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahteraraya Anugrahjaya and Sumber Alfaria 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 Sumber Alfaria Trijaya 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 Sumber Alfaria i.e., Sumber Alfaria and Sejahteraraya Anugrahjaya go up and down completely randomly.
Pair Corralation between Sumber Alfaria and Sejahteraraya Anugrahjaya
Assuming the 90 days trading horizon Sumber Alfaria Trijaya is expected to under-perform the Sejahteraraya Anugrahjaya. In addition to that, Sumber Alfaria is 1.09 times more volatile than Sejahteraraya Anugrahjaya Tbk. It trades about -0.04 of its total potential returns per unit of risk. Sejahteraraya Anugrahjaya Tbk is currently generating about -0.03 per unit of volatility. If you would invest 256,000 in Sejahteraraya Anugrahjaya Tbk on September 16, 2024 and sell it today you would lose (13,000) from holding Sejahteraraya Anugrahjaya Tbk or give up 5.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sumber Alfaria Trijaya vs. Sejahteraraya Anugrahjaya Tbk
Performance |
Timeline |
Sumber Alfaria Trijaya |
Sejahteraraya Anugrahjaya |
Sumber Alfaria and Sejahteraraya Anugrahjaya Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sumber Alfaria and Sejahteraraya Anugrahjaya
The main advantage of trading using opposite Sumber Alfaria and Sejahteraraya Anugrahjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Alfaria 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.Sumber Alfaria vs. Elang Mahkota Teknologi | Sumber Alfaria vs. Ace Hardware Indonesia | Sumber Alfaria vs. BFI Finance Indonesia | Sumber Alfaria vs. Tower Bersama 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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