Correlation Between Samindo Resources and Baramulti Suksessarana
Can any of the company-specific risk be diversified away by investing in both Samindo Resources and Baramulti Suksessarana 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 Baramulti Suksessarana 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 Baramulti Suksessarana Tbk, you can compare the effects of market volatilities on Samindo Resources and Baramulti Suksessarana 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 Baramulti Suksessarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samindo Resources and Baramulti Suksessarana.
Diversification Opportunities for Samindo Resources and Baramulti Suksessarana
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samindo and Baramulti is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Samindo Resources Tbk and Baramulti Suksessarana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baramulti Suksessarana 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 Baramulti Suksessarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baramulti Suksessarana has no effect on the direction of Samindo Resources i.e., Samindo Resources and Baramulti Suksessarana go up and down completely randomly.
Pair Corralation between Samindo Resources and Baramulti Suksessarana
Assuming the 90 days trading horizon Samindo Resources is expected to generate 10.5 times less return on investment than Baramulti Suksessarana. In addition to that, Samindo Resources is 1.06 times more volatile than Baramulti Suksessarana Tbk. It trades about 0.01 of its total potential returns per unit of risk. Baramulti Suksessarana Tbk is currently generating about 0.06 per unit of volatility. If you would invest 284,217 in Baramulti Suksessarana Tbk on August 26, 2024 and sell it today you would earn a total of 144,783 from holding Baramulti Suksessarana Tbk or generate 50.94% 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. Baramulti Suksessarana Tbk
Performance |
| Timeline |
| Samindo Resources Tbk |
| Baramulti Suksessarana |
Samindo Resources and Baramulti Suksessarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samindo Resources and Baramulti Suksessarana
The main advantage of trading using opposite Samindo Resources and Baramulti Suksessarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samindo Resources position performs unexpectedly, Baramulti Suksessarana 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 Baramulti Suksessarana will offset losses from the drop in Baramulti Suksessarana's long position.| Samindo Resources vs. Petrosea Tbk | Samindo Resources vs. Harum Energy Tbk | Samindo Resources vs. Perdana Karya Perkasa |
| Baramulti Suksessarana vs. Mitrabara Adiperdana PT | Baramulti Suksessarana vs. Bayan Resources Tbk | Baramulti Suksessarana vs. Abm Investama Tbk | Baramulti Suksessarana vs. TBS Energi Utama |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |