Correlation Between Perdana Bangun and Samudera Indonesia
Can any of the company-specific risk be diversified away by investing in both Perdana Bangun and Samudera Indonesia 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 Perdana Bangun and Samudera Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perdana Bangun Pusaka and Samudera Indonesia Tbk, you can compare the effects of market volatilities on Perdana Bangun and Samudera Indonesia 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 Perdana Bangun with a short position of Samudera Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perdana Bangun and Samudera Indonesia.
Diversification Opportunities for Perdana Bangun and Samudera Indonesia
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Perdana and Samudera is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Perdana Bangun Pusaka and Samudera Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samudera Indonesia Tbk and Perdana Bangun 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 Perdana Bangun Pusaka are associated (or correlated) with Samudera Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samudera Indonesia Tbk has no effect on the direction of Perdana Bangun i.e., Perdana Bangun and Samudera Indonesia go up and down completely randomly.
Pair Corralation between Perdana Bangun and Samudera Indonesia
Assuming the 90 days trading horizon Perdana Bangun Pusaka is expected to under-perform the Samudera Indonesia. But the stock apears to be less risky and, when comparing its historical volatility, Perdana Bangun Pusaka is 1.34 times less risky than Samudera Indonesia. The stock trades about -0.07 of its potential returns per unit of risk. The Samudera Indonesia Tbk is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 22,200 in Samudera Indonesia Tbk on January 22, 2025 and sell it today you would earn a total of 1,600 from holding Samudera Indonesia Tbk or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perdana Bangun Pusaka vs. Samudera Indonesia Tbk
Performance |
| Timeline |
| Perdana Bangun Pusaka |
| Samudera Indonesia Tbk |
Perdana Bangun and Samudera Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perdana Bangun and Samudera Indonesia
The main advantage of trading using opposite Perdana Bangun and Samudera Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perdana Bangun position performs unexpectedly, Samudera Indonesia 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 Samudera Indonesia will offset losses from the drop in Samudera Indonesia's long position.| Perdana Bangun vs. Inter Delta Tbk | Perdana Bangun vs. Jakarta Setiabudi Internasional | Perdana Bangun vs. Modern Internasional Tbk | Perdana Bangun vs. Multi Indocitra Tbk |
| Samudera Indonesia vs. PT Temas Tbk | Samudera Indonesia vs. Petrosea Tbk | Samudera Indonesia vs. Rig Tenders Tbk | Samudera Indonesia vs. Rukun Raharja 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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