Correlation Between Austindo Nusantara and Saratoga Investama
Can any of the company-specific risk be diversified away by investing in both Austindo Nusantara and Saratoga Investama 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 Austindo Nusantara and Saratoga Investama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austindo Nusantara Jaya and Saratoga Investama Sedaya, you can compare the effects of market volatilities on Austindo Nusantara and Saratoga Investama 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 Austindo Nusantara with a short position of Saratoga Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austindo Nusantara and Saratoga Investama.
Diversification Opportunities for Austindo Nusantara and Saratoga Investama
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Austindo and Saratoga is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Austindo Nusantara Jaya and Saratoga Investama Sedaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investama Sedaya and Austindo Nusantara 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 Austindo Nusantara Jaya are associated (or correlated) with Saratoga Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investama Sedaya has no effect on the direction of Austindo Nusantara i.e., Austindo Nusantara and Saratoga Investama go up and down completely randomly.
Pair Corralation between Austindo Nusantara and Saratoga Investama
Assuming the 90 days trading horizon Austindo Nusantara Jaya is expected to generate 0.26 times more return on investment than Saratoga Investama. However, Austindo Nusantara Jaya is 3.79 times less risky than Saratoga Investama. It trades about 0.1 of its potential returns per unit of risk. Saratoga Investama Sedaya is currently generating about 0.02 per unit of risk. If you would invest 69,500 in Austindo Nusantara Jaya on September 13, 2024 and sell it today you would earn a total of 4,500 from holding Austindo Nusantara Jaya or generate 6.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Austindo Nusantara Jaya vs. Saratoga Investama Sedaya
Performance |
Timeline |
Austindo Nusantara Jaya |
Saratoga Investama Sedaya |
Austindo Nusantara and Saratoga Investama Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Austindo Nusantara and Saratoga Investama
The main advantage of trading using opposite Austindo Nusantara and Saratoga Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austindo Nusantara position performs unexpectedly, Saratoga Investama 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 Saratoga Investama will offset losses from the drop in Saratoga Investama's long position.Austindo Nusantara vs. Dharma Satya Nusantara | Austindo Nusantara vs. Provident Agro Tbk | Austindo Nusantara vs. Salim Ivomas Pratama | Austindo Nusantara vs. Jaya Agra Wattie |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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