Correlation Between PT Sari and Damai Sejahtera
Can any of the company-specific risk be diversified away by investing in both PT Sari and Damai Sejahtera 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 PT Sari and Damai Sejahtera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sari Kreasi and Damai Sejahtera Abadi, you can compare the effects of market volatilities on PT Sari and Damai Sejahtera 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 PT Sari with a short position of Damai Sejahtera. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sari and Damai Sejahtera.
Diversification Opportunities for PT Sari and Damai Sejahtera
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RAFI and Damai is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT Sari Kreasi and Damai Sejahtera Abadi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damai Sejahtera Abadi and PT Sari 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 PT Sari Kreasi are associated (or correlated) with Damai Sejahtera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Damai Sejahtera Abadi has no effect on the direction of PT Sari i.e., PT Sari and Damai Sejahtera go up and down completely randomly.
Pair Corralation between PT Sari and Damai Sejahtera
Assuming the 90 days trading horizon PT Sari Kreasi is expected to generate 1.84 times more return on investment than Damai Sejahtera. However, PT Sari is 1.84 times more volatile than Damai Sejahtera Abadi. It trades about 0.09 of its potential returns per unit of risk. Damai Sejahtera Abadi is currently generating about 0.15 per unit of risk. If you would invest 2,900 in PT Sari Kreasi on September 17, 2024 and sell it today you would earn a total of 700.00 from holding PT Sari Kreasi or generate 24.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
PT Sari Kreasi vs. Damai Sejahtera Abadi
Performance |
Timeline |
PT Sari Kreasi |
Damai Sejahtera Abadi |
PT Sari and Damai Sejahtera Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Sari and Damai Sejahtera
The main advantage of trading using opposite PT Sari and Damai Sejahtera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sari position performs unexpectedly, Damai Sejahtera 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 Damai Sejahtera will offset losses from the drop in Damai Sejahtera's long position.PT Sari vs. PT Dewi Shri | PT Sari vs. Bangun Karya Perkasa | PT Sari vs. Gaya Abadi Sempurna | PT Sari vs. Habco Trans Maritima |
Damai Sejahtera vs. PT Sunter Lakeside | Damai Sejahtera vs. Widodo Makmur Unggas | Damai Sejahtera vs. Trisula Textile Industries | Damai Sejahtera vs. Diagnos Laboratorium Utama |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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