Correlation Between Ace Oldfields and Semacom Integrated
Can any of the company-specific risk be diversified away by investing in both Ace Oldfields and Semacom Integrated 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 Ace Oldfields and Semacom Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ace Oldfields PT and Semacom Integrated Tbk, you can compare the effects of market volatilities on Ace Oldfields and Semacom Integrated 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 Ace Oldfields with a short position of Semacom Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ace Oldfields and Semacom Integrated.
Diversification Opportunities for Ace Oldfields and Semacom Integrated
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ace and Semacom is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ace Oldfields PT and Semacom Integrated Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semacom Integrated Tbk and Ace Oldfields 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 Ace Oldfields PT are associated (or correlated) with Semacom Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semacom Integrated Tbk has no effect on the direction of Ace Oldfields i.e., Ace Oldfields and Semacom Integrated go up and down completely randomly.
Pair Corralation between Ace Oldfields and Semacom Integrated
Assuming the 90 days trading horizon Ace Oldfields PT is expected to generate 0.42 times more return on investment than Semacom Integrated. However, Ace Oldfields PT is 2.4 times less risky than Semacom Integrated. It trades about 0.0 of its potential returns per unit of risk. Semacom Integrated Tbk is currently generating about 0.0 per unit of risk. If you would invest 5,183 in Ace Oldfields PT on August 30, 2024 and sell it today you would lose (183.00) from holding Ace Oldfields PT or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ace Oldfields PT vs. Semacom Integrated Tbk
Performance |
| Timeline |
| Ace Oldfields PT |
| Semacom Integrated Tbk |
Ace Oldfields and Semacom Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ace Oldfields and Semacom Integrated
The main advantage of trading using opposite Ace Oldfields and Semacom Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ace Oldfields position performs unexpectedly, Semacom Integrated 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 Semacom Integrated will offset losses from the drop in Semacom Integrated's long position.| Ace Oldfields vs. Ladangbaja Murni PT | Ace Oldfields vs. PT Hasnur Internasional | Ace Oldfields vs. Geoprima Solusi Tbk | Ace Oldfields vs. Prima Andalan Mandiri |
| Semacom Integrated vs. RMK Energy PT | Semacom Integrated vs. Adaro Minerals Indonesia | Semacom Integrated vs. Sumber Global Energy | Semacom Integrated vs. PT Hasnur Internasional |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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