Correlation Between PT Saraswanti and Adhi Commuter
Can any of the company-specific risk be diversified away by investing in both PT Saraswanti and Adhi Commuter 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 Saraswanti and Adhi Commuter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Saraswanti Indoland and Adhi Commuter Properti, you can compare the effects of market volatilities on PT Saraswanti and Adhi Commuter 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 Saraswanti with a short position of Adhi Commuter. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Saraswanti and Adhi Commuter.
Diversification Opportunities for PT Saraswanti and Adhi Commuter
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SWID and Adhi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PT Saraswanti Indoland and Adhi Commuter Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adhi Commuter Properti and PT Saraswanti 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 Saraswanti Indoland are associated (or correlated) with Adhi Commuter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adhi Commuter Properti has no effect on the direction of PT Saraswanti i.e., PT Saraswanti and Adhi Commuter go up and down completely randomly.
Pair Corralation between PT Saraswanti and Adhi Commuter
Assuming the 90 days trading horizon PT Saraswanti Indoland is expected to under-perform the Adhi Commuter. In addition to that, PT Saraswanti is 5.94 times more volatile than Adhi Commuter Properti. It trades about -0.11 of its total potential returns per unit of risk. Adhi Commuter Properti is currently generating about 0.0 per unit of volatility. If you would invest 5,000 in Adhi Commuter Properti on September 26, 2024 and sell it today you would earn a total of 0.00 from holding Adhi Commuter Properti or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PT Saraswanti Indoland vs. Adhi Commuter Properti
Performance |
Timeline |
PT Saraswanti Indoland |
Adhi Commuter Properti |
PT Saraswanti and Adhi Commuter Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Saraswanti and Adhi Commuter
The main advantage of trading using opposite PT Saraswanti and Adhi Commuter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Saraswanti position performs unexpectedly, Adhi Commuter 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 Adhi Commuter will offset losses from the drop in Adhi Commuter's long position.PT Saraswanti vs. Jaya Sukses Makmur | PT Saraswanti vs. Hanson International Tbk | PT Saraswanti vs. Pollux Investasi Internasional | PT Saraswanti vs. Adhi Commuter Properti |
Adhi Commuter vs. Jaya Sukses Makmur | Adhi Commuter vs. Hanson International Tbk | Adhi Commuter vs. Pollux Investasi Internasional | Adhi Commuter vs. Modernland Realty Ltd |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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