Correlation Between PT Sunter and Panca Anugrah

Can any of the company-specific risk be diversified away by investing in both PT Sunter and Panca Anugrah 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 Sunter and Panca Anugrah into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Sunter Lakeside and Panca Anugrah Wisesa, you can compare the effects of market volatilities on PT Sunter and Panca Anugrah 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 Sunter with a short position of Panca Anugrah. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sunter and Panca Anugrah.

Diversification Opportunities for PT Sunter and Panca Anugrah

0.47

Correlation Coefficient

PT Sunter  Panca Anugrah

Very weak diversification

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

Pair Corralation between PT Sunter and Panca Anugrah

Assuming the 90 days trading horizon PT Sunter is expected to generate 6.39 times less return on investment than Panca Anugrah. In addition to that, PT Sunter is 1.09 times more volatile than Panca Anugrah Wisesa. It trades about 0.02 of its total potential returns per unit of risk. Panca Anugrah Wisesa is currently generating about 0.11 per unit of volatility. If you would invest  6,900  in Panca Anugrah Wisesa on December 4, 2024 and sell it today you would earn a total of  2,000  from holding Panca Anugrah Wisesa or generate 28.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

PT Sunter Lakeside  vs.  Panca Anugrah Wisesa

PT Sunter Lakeside

Risk-Adjusted Performance

Weak

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

Panca Anugrah Wisesa

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Panca Anugrah Wisesa are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Panca Anugrah disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Sunter and Panca Anugrah

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

The idea behind PT Sunter Lakeside and Panca Anugrah Wisesa 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.