Correlation Between Samindo Resources and Abm Investama
Can any of the company-specific risk be diversified away by investing in both Samindo Resources and Abm Investama 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 Samindo Resources and Abm Investama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samindo Resources Tbk and Abm Investama Tbk, you can compare the effects of market volatilities on Samindo Resources and Abm Investama 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 Samindo Resources with a short position of Abm Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samindo Resources and Abm Investama.
Diversification Opportunities for Samindo Resources and Abm Investama
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samindo and Abm is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samindo Resources Tbk and Abm Investama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abm Investama Tbk and Samindo Resources 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 Samindo Resources Tbk are associated (or correlated) with Abm Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abm Investama Tbk has no effect on the direction of Samindo Resources i.e., Samindo Resources and Abm Investama go up and down completely randomly.
Pair Corralation between Samindo Resources and Abm Investama
Assuming the 90 days trading horizon Samindo Resources Tbk is expected to under-perform the Abm Investama. But the stock apears to be less risky and, when comparing its historical volatility, Samindo Resources Tbk is 1.29 times less risky than Abm Investama. The stock trades about -0.04 of its potential returns per unit of risk. The Abm Investama Tbk is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 349,000 in Abm Investama Tbk on August 28, 2024 and sell it today you would earn a total of 13,000 from holding Abm Investama Tbk or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samindo Resources Tbk vs. Abm Investama Tbk
Performance |
| Timeline |
| Samindo Resources Tbk |
| Abm Investama Tbk |
Samindo Resources and Abm Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samindo Resources and Abm Investama
The main advantage of trading using opposite Samindo Resources and Abm Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samindo Resources position performs unexpectedly, Abm Investama 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 Abm Investama will offset losses from the drop in Abm Investama's long position.| Samindo Resources vs. Resource Alam Indonesia | Samindo Resources vs. Petrosea Tbk | Samindo Resources vs. Kmi Wire And | Samindo Resources vs. Mitrabara Adiperdana PT |
| Abm Investama vs. Baramulti Suksessarana Tbk | Abm Investama vs. Mitrabara Adiperdana PT | Abm Investama vs. Sumber Alfaria Trijaya | Abm Investama vs. Surya Esa Perkasa |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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