Correlation Between Pacific Strategic and Siloam International
Can any of the company-specific risk be diversified away by investing in both Pacific Strategic and Siloam International 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 Pacific Strategic and Siloam International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Strategic Financial and Siloam International Hospitals, you can compare the effects of market volatilities on Pacific Strategic and Siloam International 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 Pacific Strategic with a short position of Siloam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Strategic and Siloam International.
Diversification Opportunities for Pacific Strategic and Siloam International
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pacific and Siloam is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Strategic Financial and Siloam International Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siloam International and Pacific Strategic 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 Pacific Strategic Financial are associated (or correlated) with Siloam International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siloam International has no effect on the direction of Pacific Strategic i.e., Pacific Strategic and Siloam International go up and down completely randomly.
Pair Corralation between Pacific Strategic and Siloam International
Assuming the 90 days trading horizon Pacific Strategic Financial is expected to generate 0.42 times more return on investment than Siloam International. However, Pacific Strategic Financial is 2.36 times less risky than Siloam International. It trades about 0.35 of its potential returns per unit of risk. Siloam International Hospitals is currently generating about -0.12 per unit of risk. If you would invest 108,500 in Pacific Strategic Financial on October 26, 2024 and sell it today you would earn a total of 6,000 from holding Pacific Strategic Financial or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Pacific Strategic Financial vs. Siloam International Hospitals
Performance |
| Timeline |
| Pacific Strategic |
| Siloam International |
Pacific Strategic and Siloam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Strategic and Siloam International
The main advantage of trading using opposite Pacific Strategic and Siloam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Strategic position performs unexpectedly, Siloam International 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 Siloam International will offset losses from the drop in Siloam International's long position.| Pacific Strategic vs. Asuransi Harta Aman | Pacific Strategic vs. Asuransi Bintang Tbk | Pacific Strategic vs. Mnc Kapital Indonesia | Pacific Strategic vs. Arthavest Tbk |
| Siloam International vs. Astra Graphia Tbk | Siloam International vs. Hexindo Adiperkasa Tbk | Siloam International vs. Lautan Luas Tbk | Siloam International vs. Citra Marga Nusaphala |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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