Correlation Between Asahimas Flat and Salim Ivomas
Can any of the company-specific risk be diversified away by investing in both Asahimas Flat 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 Asahimas Flat and Salim Ivomas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asahimas Flat Glass and Salim Ivomas Pratama, you can compare the effects of market volatilities on Asahimas Flat 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 Asahimas Flat with a short position of Salim Ivomas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asahimas Flat and Salim Ivomas.
Diversification Opportunities for Asahimas Flat and Salim Ivomas
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asahimas and Salim is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Asahimas Flat Glass 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 Asahimas Flat 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 Asahimas Flat Glass 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 Asahimas Flat i.e., Asahimas Flat and Salim Ivomas go up and down completely randomly.
Pair Corralation between Asahimas Flat and Salim Ivomas
Assuming the 90 days trading horizon Asahimas Flat Glass is expected to under-perform the Salim Ivomas. But the stock apears to be less risky and, when comparing its historical volatility, Asahimas Flat Glass is 1.04 times less risky than Salim Ivomas. The stock trades about -0.09 of its potential returns per unit of risk. The Salim Ivomas Pratama is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 35,222 in Salim Ivomas Pratama on November 5, 2024 and sell it today you would earn a total of 2,778 from holding Salim Ivomas Pratama or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Asahimas Flat Glass vs. Salim Ivomas Pratama
Performance |
| Timeline |
| Asahimas Flat Glass |
| Salim Ivomas Pratama |
Asahimas Flat and Salim Ivomas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asahimas Flat and Salim Ivomas
The main advantage of trading using opposite Asahimas Flat and Salim Ivomas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asahimas Flat 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.| Asahimas Flat vs. Arwana Citramulia Tbk | Asahimas Flat vs. Asiaplast Industries Tbk | Asahimas Flat vs. Argha Karya Prima | Asahimas Flat vs. Astra Graphia Tbk |
| Salim Ivomas vs. Perusahaan Perkebunan London | Salim Ivomas vs. Eagle High Plantations | Salim Ivomas vs. Surya Semesta Internusa | Salim Ivomas vs. Harum Energy 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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