Correlation Between PT Data and Siloam International
Can any of the company-specific risk be diversified away by investing in both PT Data 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 PT Data and Siloam International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Data Sinergitama and Siloam International Hospitals, you can compare the effects of market volatilities on PT Data 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 PT Data with a short position of Siloam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Data and Siloam International.
Diversification Opportunities for PT Data and Siloam International
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ELIT and Siloam is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding PT Data Sinergitama and Siloam International Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siloam International and PT Data 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 PT Data Sinergitama 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 PT Data i.e., PT Data and Siloam International go up and down completely randomly.
Pair Corralation between PT Data and Siloam International
Assuming the 90 days trading horizon PT Data Sinergitama is expected to generate 2.83 times more return on investment than Siloam International. However, PT Data is 2.83 times more volatile than Siloam International Hospitals. It trades about 0.17 of its potential returns per unit of risk. Siloam International Hospitals is currently generating about -0.11 per unit of risk. If you would invest 11,900 in PT Data Sinergitama on November 5, 2024 and sell it today you would earn a total of 1,100 from holding PT Data Sinergitama or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Data Sinergitama vs. Siloam International Hospitals
Performance |
| Timeline |
| PT Data Sinergitama |
| Siloam International |
PT Data and Siloam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Data and Siloam International
The main advantage of trading using opposite PT Data and Siloam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Data 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.| PT Data vs. Indosterling Technomedia Tbk | PT Data vs. Indonesian Tobacco Tbk | PT Data vs. Ashmore Asset Management | PT Data vs. Siloam International Hospitals |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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