Correlation Between Prima Andalan and PT Saraswanti
Can any of the company-specific risk be diversified away by investing in both Prima Andalan and PT Saraswanti 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 Prima Andalan and PT Saraswanti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prima Andalan Mandiri and PT Saraswanti Indoland, you can compare the effects of market volatilities on Prima Andalan and PT Saraswanti 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 Prima Andalan with a short position of PT Saraswanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prima Andalan and PT Saraswanti.
Diversification Opportunities for Prima Andalan and PT Saraswanti
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Prima and SWID is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Prima Andalan Mandiri and PT Saraswanti Indoland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Saraswanti Indoland and Prima Andalan 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 Prima Andalan Mandiri are associated (or correlated) with PT Saraswanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Saraswanti Indoland has no effect on the direction of Prima Andalan i.e., Prima Andalan and PT Saraswanti go up and down completely randomly.
Pair Corralation between Prima Andalan and PT Saraswanti
Assuming the 90 days trading horizon Prima Andalan Mandiri is expected to generate 0.45 times more return on investment than PT Saraswanti. However, Prima Andalan Mandiri is 2.22 times less risky than PT Saraswanti. It trades about -0.1 of its potential returns per unit of risk. PT Saraswanti Indoland is currently generating about -0.11 per unit of risk. If you would invest 545,984 in Prima Andalan Mandiri on September 26, 2024 and sell it today you would lose (33,484) from holding Prima Andalan Mandiri or give up 6.13% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.44% |
Values | Daily Returns |
Prima Andalan Mandiri vs. PT Saraswanti Indoland
Performance |
Timeline |
Prima Andalan Mandiri |
PT Saraswanti Indoland |
Prima Andalan and PT Saraswanti Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Prima Andalan and PT Saraswanti
The main advantage of trading using opposite Prima Andalan and PT Saraswanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prima Andalan position performs unexpectedly, PT Saraswanti 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 Saraswanti will offset losses from the drop in PT Saraswanti's long position.Prima Andalan vs. Adaro Minerals Indonesia | Prima Andalan vs. Golden Eagle Energy | Prima Andalan vs. Resource Alam Indonesia |
PT Saraswanti vs. Jaya Sukses Makmur | PT Saraswanti vs. Hanson International Tbk | PT Saraswanti vs. Pollux Investasi Internasional | PT Saraswanti vs. Adhi Commuter Properti |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Global Correlations Find global opportunities by holding instruments from different markets | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |