Correlation Between Comstock Holding and PT Semen
Can any of the company-specific risk be diversified away by investing in both Comstock Holding and PT Semen 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 Comstock Holding and PT Semen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comstock Holding Companies and PT Semen Indonesia, you can compare the effects of market volatilities on Comstock Holding and PT Semen 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 Comstock Holding with a short position of PT Semen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and PT Semen.
Diversification Opportunities for Comstock Holding and PT Semen
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Comstock and PSGTF is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and PT Semen Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Semen Indonesia and Comstock Holding 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 Comstock Holding Companies are associated (or correlated) with PT Semen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Semen Indonesia has no effect on the direction of Comstock Holding i.e., Comstock Holding and PT Semen go up and down completely randomly.
Pair Corralation between Comstock Holding and PT Semen
Given the investment horizon of 90 days Comstock Holding Companies is expected to generate 1.65 times more return on investment than PT Semen. However, Comstock Holding is 1.65 times more volatile than PT Semen Indonesia. It trades about -0.04 of its potential returns per unit of risk. PT Semen Indonesia is currently generating about -0.22 per unit of risk. If you would invest 884.00 in Comstock Holding Companies on September 15, 2024 and sell it today you would lose (44.00) from holding Comstock Holding Companies or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comstock Holding Companies vs. PT Semen Indonesia
Performance |
| Timeline |
| Comstock Holding Com |
| PT Semen Indonesia |
Comstock Holding and PT Semen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Holding and PT Semen
The main advantage of trading using opposite Comstock Holding and PT Semen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding position performs unexpectedly, PT Semen 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 PT Semen will offset losses from the drop in PT Semen's long position.| Comstock Holding vs. Arhaus Inc | Comstock Holding vs. Floor Decor Holdings | Comstock Holding vs. Kingfisher plc | Comstock Holding vs. Haverty Furniture Companies |
| PT Semen vs. Comstock Holding Companies | PT Semen vs. Gentex | PT Semen vs. PACCAR Inc | PT Semen vs. CapitaLand Investment Limited |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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