Correlation Between Sentul City and Wahana Pronatural
Can any of the company-specific risk be diversified away by investing in both Sentul City and Wahana Pronatural 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 Sentul City and Wahana Pronatural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentul City Tbk and Wahana Pronatural, you can compare the effects of market volatilities on Sentul City and Wahana Pronatural 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 Sentul City with a short position of Wahana Pronatural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentul City and Wahana Pronatural.
Diversification Opportunities for Sentul City and Wahana Pronatural
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sentul and Wahana is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sentul City Tbk and Wahana Pronatural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Pronatural and Sentul City 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 Sentul City Tbk are associated (or correlated) with Wahana Pronatural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Pronatural has no effect on the direction of Sentul City i.e., Sentul City and Wahana Pronatural go up and down completely randomly.
Pair Corralation between Sentul City and Wahana Pronatural
Assuming the 90 days trading horizon Sentul City Tbk is expected to generate 0.83 times more return on investment than Wahana Pronatural. However, Sentul City Tbk is 1.2 times less risky than Wahana Pronatural. It trades about 0.23 of its potential returns per unit of risk. Wahana Pronatural is currently generating about 0.12 per unit of risk. If you would invest 3,800 in Sentul City Tbk on November 24, 2024 and sell it today you would earn a total of 3,500 from holding Sentul City Tbk or generate 92.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sentul City Tbk vs. Wahana Pronatural
Performance |
Timeline |
Sentul City Tbk |
Wahana Pronatural |
Sentul City and Wahana Pronatural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sentul City and Wahana Pronatural
The main advantage of trading using opposite Sentul City and Wahana Pronatural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentul City position performs unexpectedly, Wahana Pronatural 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 Wahana Pronatural will offset losses from the drop in Wahana Pronatural's long position.Sentul City vs. Alam Sutera Realty | ||
Sentul City vs. Kawasan Industri Jababeka | ||
Sentul City vs. Lippo Karawaci Tbk | ||
Sentul City vs. Ciputra Development Tbk |
Wahana Pronatural vs. Wicaksana Overseas International | ||
Wahana Pronatural vs. Millennium Pharmacon International | ||
Wahana Pronatural vs. Tigaraksa Satria Tbk | ||
Wahana Pronatural vs. Tempo Inti Media |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |