Correlation Between Sumber Energi and Pelayaran Nasional
Can any of the company-specific risk be diversified away by investing in both Sumber Energi and Pelayaran Nasional 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 Sumber Energi and Pelayaran Nasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumber Energi Andalan and Pelayaran Nasional Bina, you can compare the effects of market volatilities on Sumber Energi and Pelayaran Nasional 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 Sumber Energi with a short position of Pelayaran Nasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Energi and Pelayaran Nasional.
Diversification Opportunities for Sumber Energi and Pelayaran Nasional
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sumber and Pelayaran is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Energi Andalan and Pelayaran Nasional Bina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelayaran Nasional Bina and Sumber Energi 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 Sumber Energi Andalan are associated (or correlated) with Pelayaran Nasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelayaran Nasional Bina has no effect on the direction of Sumber Energi i.e., Sumber Energi and Pelayaran Nasional go up and down completely randomly.
Pair Corralation between Sumber Energi and Pelayaran Nasional
Assuming the 90 days trading horizon Sumber Energi Andalan is expected to under-perform the Pelayaran Nasional. In addition to that, Sumber Energi is 1.07 times more volatile than Pelayaran Nasional Bina. It trades about -0.07 of its total potential returns per unit of risk. Pelayaran Nasional Bina is currently generating about 0.16 per unit of volatility. If you would invest 6,500 in Pelayaran Nasional Bina on January 29, 2024 and sell it today you would earn a total of 400.00 from holding Pelayaran Nasional Bina or generate 6.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sumber Energi Andalan vs. Pelayaran Nasional Bina
Performance |
Timeline |
Sumber Energi Andalan |
Pelayaran Nasional Bina |
Sumber Energi and Pelayaran Nasional Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sumber Energi and Pelayaran Nasional
The main advantage of trading using opposite Sumber Energi and Pelayaran Nasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Energi position performs unexpectedly, Pelayaran Nasional 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 Nasional will offset losses from the drop in Pelayaran Nasional's long position.Sumber Energi vs. Kawasan Industri Jababeka | Sumber Energi vs. Modernland Realty Ltd | Sumber Energi vs. Multipolar Tbk | Sumber Energi vs. Lautan Luas Tbk |
Pelayaran Nasional vs. Kawasan Industri Jababeka | Pelayaran Nasional vs. Modernland Realty Ltd | Pelayaran Nasional vs. Multipolar Tbk | Pelayaran Nasional vs. Lautan Luas Tbk |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |