Correlation Between Akr Corporindo and Salim Ivomas
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and Salim Ivomas 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 Akr Corporindo and Salim Ivomas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and Salim Ivomas Pratama, you can compare the effects of market volatilities on Akr Corporindo and Salim Ivomas 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 Akr Corporindo with a short position of Salim Ivomas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and Salim Ivomas.
Diversification Opportunities for Akr Corporindo and Salim Ivomas
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akr and Salim is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and Salim Ivomas Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salim Ivomas Pratama and Akr Corporindo 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 Akr Corporindo Tbk are associated (or correlated) with Salim Ivomas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salim Ivomas Pratama has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and Salim Ivomas go up and down completely randomly.
Pair Corralation between Akr Corporindo and Salim Ivomas
Assuming the 90 days trading horizon Akr Corporindo is expected to generate 8.71 times less return on investment than Salim Ivomas. In addition to that, Akr Corporindo is 1.52 times more volatile than Salim Ivomas Pratama. It trades about 0.0 of its total potential returns per unit of risk. Salim Ivomas Pratama is currently generating about 0.02 per unit of volatility. If you would invest 37,557 in Salim Ivomas Pratama on August 24, 2024 and sell it today you would earn a total of 2,043 from holding Salim Ivomas Pratama or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akr Corporindo Tbk vs. Salim Ivomas Pratama
Performance |
| Timeline |
| Akr Corporindo Tbk |
| Salim Ivomas Pratama |
Akr Corporindo and Salim Ivomas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akr Corporindo and Salim Ivomas
The main advantage of trading using opposite Akr Corporindo and Salim Ivomas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, Salim Ivomas 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 Salim Ivomas will offset losses from the drop in Salim Ivomas' long position.| Akr Corporindo vs. Charoen Pokphand Indonesia | Akr Corporindo vs. Indocement Tunggal Prakarsa | Akr Corporindo vs. Bumi Serpong Damai | Akr Corporindo vs. Jasa Marga Tbk |
| Salim Ivomas vs. Unilever Indonesia Tbk | Salim Ivomas vs. PT Indofood Sukses | Salim Ivomas vs. Astra International Tbk | Salim Ivomas vs. Telkom Indonesia 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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