Correlation Between Sentul City and Salim Ivomas
Can any of the company-specific risk be diversified away by investing in both Sentul City 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 Sentul City and Salim Ivomas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentul City Tbk and Salim Ivomas Pratama, you can compare the effects of market volatilities on Sentul City 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 Sentul City with a short position of Salim Ivomas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentul City and Salim Ivomas.
Diversification Opportunities for Sentul City and Salim Ivomas
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sentul and Salim is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sentul City 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 Sentul City 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 Sentul City 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 Sentul City i.e., Sentul City and Salim Ivomas go up and down completely randomly.
Pair Corralation between Sentul City and Salim Ivomas
Assuming the 90 days trading horizon Sentul City Tbk is expected to generate 2.37 times more return on investment than Salim Ivomas. However, Sentul City is 2.37 times more volatile than Salim Ivomas Pratama. It trades about 0.02 of its potential returns per unit of risk. Salim Ivomas Pratama is currently generating about 0.0 per unit of risk. If you would invest 5,000 in Sentul City Tbk on November 5, 2024 and sell it today you would earn a total of 500.00 from holding Sentul City Tbk or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentul City Tbk vs. Salim Ivomas Pratama
Performance |
| Timeline |
| Sentul City Tbk |
| Salim Ivomas Pratama |
Sentul City and Salim Ivomas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentul City and Salim Ivomas
The main advantage of trading using opposite Sentul City and Salim Ivomas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentul City 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.| Sentul City vs. Alam Sutera Realty | Sentul City vs. Kawasan Industri Jababeka | Sentul City vs. Lippo Karawaci Tbk | Sentul City vs. Ciputra Development 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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