Correlation Between Samindo Resources and Bekasi Fajar
Can any of the company-specific risk be diversified away by investing in both Samindo Resources and Bekasi Fajar 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 Bekasi Fajar 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 Bekasi Fajar Industrial, you can compare the effects of market volatilities on Samindo Resources and Bekasi Fajar 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 Bekasi Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samindo Resources and Bekasi Fajar.
Diversification Opportunities for Samindo Resources and Bekasi Fajar
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samindo and Bekasi is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Samindo Resources Tbk and Bekasi Fajar Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Fajar Industrial 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 Bekasi Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Fajar Industrial has no effect on the direction of Samindo Resources i.e., Samindo Resources and Bekasi Fajar go up and down completely randomly.
Pair Corralation between Samindo Resources and Bekasi Fajar
Assuming the 90 days trading horizon Samindo Resources Tbk is expected to generate 1.12 times more return on investment than Bekasi Fajar. However, Samindo Resources is 1.12 times more volatile than Bekasi Fajar Industrial. It trades about 0.07 of its potential returns per unit of risk. Bekasi Fajar Industrial is currently generating about -0.11 per unit of risk. If you would invest 133,000 in Samindo Resources Tbk on November 2, 2024 and sell it today you would earn a total of 21,000 from holding Samindo Resources Tbk or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Samindo Resources Tbk vs. Bekasi Fajar Industrial
Performance |
| Timeline |
| Samindo Resources Tbk |
| Bekasi Fajar Industrial |
Samindo Resources and Bekasi Fajar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samindo Resources and Bekasi Fajar
The main advantage of trading using opposite Samindo Resources and Bekasi Fajar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samindo Resources position performs unexpectedly, Bekasi Fajar 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 Bekasi Fajar will offset losses from the drop in Bekasi Fajar'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 |
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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 Valuation module to check real value of public entities based on technical and fundamental data.
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