Correlation Between PT Sreeya and Austindo Nusantara
Can any of the company-specific risk be diversified away by investing in both PT Sreeya and Austindo Nusantara 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 Sreeya and Austindo Nusantara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sreeya Sewu and Austindo Nusantara Jaya, you can compare the effects of market volatilities on PT Sreeya and Austindo Nusantara 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 Sreeya with a short position of Austindo Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sreeya and Austindo Nusantara.
Diversification Opportunities for PT Sreeya and Austindo Nusantara
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SIPD and Austindo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PT Sreeya Sewu and Austindo Nusantara Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austindo Nusantara Jaya and PT Sreeya 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 Sreeya Sewu are associated (or correlated) with Austindo Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austindo Nusantara Jaya has no effect on the direction of PT Sreeya i.e., PT Sreeya and Austindo Nusantara go up and down completely randomly.
Pair Corralation between PT Sreeya and Austindo Nusantara
Assuming the 90 days trading horizon PT Sreeya Sewu is expected to under-perform the Austindo Nusantara. But the stock apears to be less risky and, when comparing its historical volatility, PT Sreeya Sewu is 1.41 times less risky than Austindo Nusantara. The stock trades about -0.1 of its potential returns per unit of risk. The Austindo Nusantara Jaya is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 73,000 in Austindo Nusantara Jaya on December 2, 2024 and sell it today you would earn a total of 18,000 from holding Austindo Nusantara Jaya or generate 24.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.31% |
Values | Daily Returns |
PT Sreeya Sewu vs. Austindo Nusantara Jaya
Performance |
Timeline |
PT Sreeya Sewu |
Austindo Nusantara Jaya |
PT Sreeya and Austindo Nusantara Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Sreeya and Austindo Nusantara
The main advantage of trading using opposite PT Sreeya and Austindo Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sreeya position performs unexpectedly, Austindo Nusantara 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 Austindo Nusantara will offset losses from the drop in Austindo Nusantara's long position.PT Sreeya vs. Central Proteina Prima | PT Sreeya vs. Kawasan Industri Jababeka | PT Sreeya vs. Tunas Baru Lampung | PT Sreeya vs. Slj Global Tbk |
Austindo Nusantara vs. Dharma Satya Nusantara | Austindo Nusantara vs. Provident Agro Tbk | Austindo Nusantara vs. Salim Ivomas Pratama | Austindo Nusantara vs. Jaya Agra Wattie |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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