Correlation Between Samindo Resources and TBS Energi
Can any of the company-specific risk be diversified away by investing in both Samindo Resources and TBS Energi 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 TBS Energi 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 TBS Energi Utama, you can compare the effects of market volatilities on Samindo Resources and TBS Energi 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 TBS Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samindo Resources and TBS Energi.
Diversification Opportunities for Samindo Resources and TBS Energi
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samindo and TBS is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Samindo Resources Tbk and TBS Energi Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TBS Energi Utama 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 TBS Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TBS Energi Utama has no effect on the direction of Samindo Resources i.e., Samindo Resources and TBS Energi go up and down completely randomly.
Pair Corralation between Samindo Resources and TBS Energi
Assuming the 90 days trading horizon Samindo Resources Tbk is expected to generate 0.47 times more return on investment than TBS Energi. However, Samindo Resources Tbk is 2.14 times less risky than TBS Energi. It trades about 0.01 of its potential returns per unit of risk. TBS Energi Utama is currently generating about 0.0 per unit of risk. If you would invest 152,401 in Samindo Resources Tbk on August 30, 2024 and sell it today you would earn a total of 7,599 from holding Samindo Resources Tbk or generate 4.99% 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. TBS Energi Utama
Performance |
| Timeline |
| Samindo Resources Tbk |
| TBS Energi Utama |
Samindo Resources and TBS Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samindo Resources and TBS Energi
The main advantage of trading using opposite Samindo Resources and TBS Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samindo Resources position performs unexpectedly, TBS Energi 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 TBS Energi will offset losses from the drop in TBS Energi'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 |
| TBS Energi vs. Golden Eagle Energy | TBS Energi vs. Baramulti Suksessarana Tbk | TBS Energi vs. Samindo Resources Tbk | TBS Energi vs. Resource Alam Indonesia |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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