Correlation Between Citra Marga and Siloam International
Can any of the company-specific risk be diversified away by investing in both Citra Marga 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 Citra Marga and Siloam International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Marga Nusaphala and Siloam International Hospitals, you can compare the effects of market volatilities on Citra Marga 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 Citra Marga with a short position of Siloam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Marga and Siloam International.
Diversification Opportunities for Citra Marga and Siloam International
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citra and Siloam is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citra Marga Nusaphala and Siloam International Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siloam International and Citra Marga 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 Citra Marga Nusaphala 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 Citra Marga i.e., Citra Marga and Siloam International go up and down completely randomly.
Pair Corralation between Citra Marga and Siloam International
Assuming the 90 days trading horizon Citra Marga Nusaphala is expected to generate 1.17 times more return on investment than Siloam International. However, Citra Marga is 1.17 times more volatile than Siloam International Hospitals. It trades about 0.14 of its potential returns per unit of risk. Siloam International Hospitals is currently generating about 0.06 per unit of risk. If you would invest 151,500 in Citra Marga Nusaphala on November 5, 2024 and sell it today you would earn a total of 245,500 from holding Citra Marga Nusaphala or generate 162.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.13% |
| Values | Daily Returns |
Citra Marga Nusaphala vs. Siloam International Hospitals
Performance |
| Timeline |
| Citra Marga Nusaphala |
| Siloam International |
Citra Marga and Siloam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Marga and Siloam International
The main advantage of trading using opposite Citra Marga and Siloam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Marga 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.| Citra Marga vs. Berlian Laju Tanker | Citra Marga vs. Solusi Bangun Indonesia | Citra Marga vs. Kawasan Industri Jababeka | Citra Marga vs. Mnc Investama Tbk |
| Siloam International vs. Mitra Keluarga Karyasehat | Siloam International vs. Matahari Department Store | Siloam International vs. Surya Citra Media | Siloam International vs. Sawit Sumbermas Sarana |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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