Correlation Between Sejahteraraya Anugrahjaya and Tifico Fiber

Can any of the company-specific risk be diversified away by investing in both Sejahteraraya Anugrahjaya and Tifico Fiber 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 Sejahteraraya Anugrahjaya and Tifico Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sejahteraraya Anugrahjaya Tbk and Tifico Fiber Indonesia, you can compare the effects of market volatilities on Sejahteraraya Anugrahjaya and Tifico Fiber 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 Sejahteraraya Anugrahjaya with a short position of Tifico Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sejahteraraya Anugrahjaya and Tifico Fiber.

Diversification Opportunities for Sejahteraraya Anugrahjaya and Tifico Fiber

0.0

Correlation Coefficient

Sejahteraraya Anugrahjaya  Tifico Fiber

Pay attention - limited upside

The 3 months correlation between Sejahteraraya and Tifico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sejahteraraya Anugrahjaya Tbk and Tifico Fiber Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tifico Fiber Indonesia and Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya Tbk are associated (or correlated) with Tifico Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tifico Fiber Indonesia has no effect on the direction of Sejahteraraya Anugrahjaya i.e., Sejahteraraya Anugrahjaya and Tifico Fiber go up and down completely randomly.

Pair Corralation between Sejahteraraya Anugrahjaya and Tifico Fiber

If you would invest  63,500  in Tifico Fiber Indonesia on September 16, 2024 and sell it today you would earn a total of  0.00  from holding Tifico Fiber Indonesia or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Sejahteraraya Anugrahjaya Tbk  vs.  Tifico Fiber Indonesia

Sejahteraraya Anugrahjaya

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Sejahteraraya Anugrahjaya Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Sejahteraraya Anugrahjaya is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Tifico Fiber Indonesia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tifico Fiber Indonesia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Tifico Fiber is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Sejahteraraya Anugrahjaya and Tifico Fiber

The main advantage of trading using opposite Sejahteraraya Anugrahjaya and Tifico Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sejahteraraya Anugrahjaya position performs unexpectedly, Tifico Fiber 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 Tifico Fiber will offset losses from the drop in Tifico Fiber's long position.

The idea behind Sejahteraraya Anugrahjaya Tbk and Tifico Fiber Indonesia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.