Correlation Between PT Sari and Pelayaran Kurnia

Can any of the company-specific risk be diversified away by investing in both PT Sari and Pelayaran Kurnia 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 Pelayaran Kurnia 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 Pelayaran Kurnia Lautan, you can compare the effects of market volatilities on PT Sari and Pelayaran Kurnia 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 Pelayaran Kurnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sari and Pelayaran Kurnia.

Diversification Opportunities for PT Sari and Pelayaran Kurnia

-0.47

Correlation Coefficient

PT Sari  Pelayaran Kurnia

Very good diversification

The 3 months correlation between RAFI and Pelayaran is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding PT Sari Kreasi and Pelayaran Kurnia Lautan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelayaran Kurnia Lautan 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 Pelayaran Kurnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelayaran Kurnia Lautan has no effect on the direction of PT Sari i.e., PT Sari and Pelayaran Kurnia go up and down completely randomly.

Pair Corralation between PT Sari and Pelayaran Kurnia

Assuming the 90 days trading horizon PT Sari Kreasi is expected to under-perform the Pelayaran Kurnia. But the stock apears to be less risky and, when comparing its historical volatility, PT Sari Kreasi is 13.84 times less risky than Pelayaran Kurnia. The stock trades about -0.06 of its potential returns per unit of risk. The Pelayaran Kurnia Lautan is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  10,975  in Pelayaran Kurnia Lautan on September 26, 2024 and sell it today you would lose (675.00) from holding Pelayaran Kurnia Lautan or give up 6.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	79.03%
Values	Daily Returns

PT Sari Kreasi  vs.  Pelayaran Kurnia Lautan

PT Sari Kreasi

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PT Sari Kreasi are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, PT Sari disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pelayaran Kurnia Lautan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pelayaran Kurnia Lautan has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Pelayaran Kurnia 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 PT Sari and Pelayaran Kurnia

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

The idea behind PT Sari Kreasi and Pelayaran Kurnia Lautan 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.