Correlation Between Samindo Resources and Pakuwon Jati
Can any of the company-specific risk be diversified away by investing in both Samindo Resources and Pakuwon Jati 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 Pakuwon Jati 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 Pakuwon Jati Tbk, you can compare the effects of market volatilities on Samindo Resources and Pakuwon Jati 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 Pakuwon Jati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samindo Resources and Pakuwon Jati.
Diversification Opportunities for Samindo Resources and Pakuwon Jati
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samindo and Pakuwon is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Samindo Resources Tbk and Pakuwon Jati Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pakuwon Jati 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 Pakuwon Jati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pakuwon Jati Tbk has no effect on the direction of Samindo Resources i.e., Samindo Resources and Pakuwon Jati go up and down completely randomly.
Pair Corralation between Samindo Resources and Pakuwon Jati
Assuming the 90 days trading horizon Samindo Resources Tbk is expected to generate 1.01 times more return on investment than Pakuwon Jati. However, Samindo Resources is 1.01 times more volatile than Pakuwon Jati Tbk. It trades about 0.17 of its potential returns per unit of risk. Pakuwon Jati Tbk is currently generating about -0.22 per unit of risk. If you would invest 185,000 in Samindo Resources Tbk on January 3, 2025 and sell it today you would earn a total of 14,000 from holding Samindo Resources Tbk or generate 7.57% 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. Pakuwon Jati Tbk
Performance |
| Timeline |
| Samindo Resources Tbk |
| Pakuwon Jati Tbk |
Samindo Resources and Pakuwon Jati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samindo Resources and Pakuwon Jati
The main advantage of trading using opposite Samindo Resources and Pakuwon Jati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samindo Resources position performs unexpectedly, Pakuwon Jati 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 Pakuwon Jati will offset losses from the drop in Pakuwon Jati'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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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