Correlation Between Samindo Resources and Samudera Indonesia
Can any of the company-specific risk be diversified away by investing in both Samindo Resources and Samudera Indonesia 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 Samudera Indonesia 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 Samudera Indonesia Tbk, you can compare the effects of market volatilities on Samindo Resources and Samudera Indonesia 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 Samudera Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samindo Resources and Samudera Indonesia.
Diversification Opportunities for Samindo Resources and Samudera Indonesia
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samindo and Samudera is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Samindo Resources Tbk and Samudera Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samudera Indonesia 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 Samudera Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samudera Indonesia Tbk has no effect on the direction of Samindo Resources i.e., Samindo Resources and Samudera Indonesia go up and down completely randomly.
Pair Corralation between Samindo Resources and Samudera Indonesia
Assuming the 90 days trading horizon Samindo Resources Tbk is expected to generate 1.52 times more return on investment than Samudera Indonesia. However, Samindo Resources is 1.52 times more volatile than Samudera Indonesia Tbk. It trades about 0.07 of its potential returns per unit of risk. Samudera Indonesia Tbk is currently generating about -0.2 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. Samudera Indonesia Tbk
Performance |
| Timeline |
| Samindo Resources Tbk |
| Samudera Indonesia Tbk |
Samindo Resources and Samudera Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samindo Resources and Samudera Indonesia
The main advantage of trading using opposite Samindo Resources and Samudera Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samindo Resources position performs unexpectedly, Samudera Indonesia 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 Samudera Indonesia will offset losses from the drop in Samudera Indonesia'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 |
| Samudera Indonesia vs. PT Temas Tbk | Samudera Indonesia vs. Petrosea Tbk | Samudera Indonesia vs. Rig Tenders Tbk | Samudera Indonesia vs. Rukun Raharja Tbk |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |