Correlation Between Hotel Sahid and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both Hotel Sahid and Asia Pacific 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 Hotel Sahid and Asia Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Sahid Jaya and Asia Pacific Investama, you can compare the effects of market volatilities on Hotel Sahid and Asia Pacific 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 Hotel Sahid with a short position of Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sahid and Asia Pacific.
Diversification Opportunities for Hotel Sahid and Asia Pacific
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hotel and Asia is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sahid Jaya and Asia Pacific Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investama and Hotel Sahid 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 Hotel Sahid Jaya are associated (or correlated) with Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investama has no effect on the direction of Hotel Sahid i.e., Hotel Sahid and Asia Pacific go up and down completely randomly.
Pair Corralation between Hotel Sahid and Asia Pacific
Assuming the 90 days trading horizon Hotel Sahid Jaya is expected to under-perform the Asia Pacific. In addition to that, Hotel Sahid is 6.1 times more volatile than Asia Pacific Investama. It trades about -0.03 of its total potential returns per unit of risk. Asia Pacific Investama is currently generating about 0.04 per unit of volatility. If you would invest 3,500 in Asia Pacific Investama on December 29, 2024 and sell it today you would earn a total of 100.00 from holding Asia Pacific Investama or generate 2.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hotel Sahid Jaya vs. Asia Pacific Investama
Performance |
Timeline |
Hotel Sahid Jaya |
Asia Pacific Investama |
Hotel Sahid and Asia Pacific Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hotel Sahid and Asia Pacific
The main advantage of trading using opposite Hotel Sahid and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sahid position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Sona Topas Tourism | Hotel Sahid vs. Millennium Pharmacon International |
Asia Pacific vs. Pan Brothers Tbk | Asia Pacific vs. Asia Pacific Fibers | Asia Pacific vs. Ricky Putra Globalindo | Asia Pacific vs. Prima Alloy Steel |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
CEOs Directory Screen CEOs from public companies around the world | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |