Correlation Between Sinergi Inti and Agro Yasa

Can any of the company-specific risk be diversified away by investing in both Sinergi Inti and Agro Yasa 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 Sinergi Inti and Agro Yasa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sinergi Inti Plastindo and Agro Yasa Lestari, you can compare the effects of market volatilities on Sinergi Inti and Agro Yasa 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 Sinergi Inti with a short position of Agro Yasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinergi Inti and Agro Yasa.

Diversification Opportunities for Sinergi Inti and Agro Yasa

-0.21

Correlation Coefficient

Sinergi Inti  Agro Yasa

Very good diversification

The 3 months correlation between Sinergi and Agro is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sinergi Inti Plastindo and Agro Yasa Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agro Yasa Lestari and Sinergi Inti 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 Sinergi Inti Plastindo are associated (or correlated) with Agro Yasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agro Yasa Lestari has no effect on the direction of Sinergi Inti i.e., Sinergi Inti and Agro Yasa go up and down completely randomly.

Pair Corralation between Sinergi Inti and Agro Yasa

Assuming the 90 days trading horizon Sinergi Inti Plastindo is expected to generate 0.55 times more return on investment than Agro Yasa. However, Sinergi Inti Plastindo is 1.83 times less risky than Agro Yasa. It trades about 0.01 of its potential returns per unit of risk. Agro Yasa Lestari is currently generating about -0.22 per unit of risk. If you would invest  2,200  in Sinergi Inti Plastindo on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Sinergi Inti Plastindo or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Sinergi Inti Plastindo  vs.  Agro Yasa Lestari

Sinergi Inti Plastindo

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sinergi Inti Plastindo are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Sinergi Inti is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Agro Yasa Lestari

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agro Yasa Lestari has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Sinergi Inti and Agro Yasa

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

The idea behind Sinergi Inti Plastindo and Agro Yasa Lestari 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.