Correlation Between Prodia Widyahusada and Selamat Sempurna
Can any of the company-specific risk be diversified away by investing in both Prodia Widyahusada and Selamat Sempurna 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 Prodia Widyahusada and Selamat Sempurna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prodia Widyahusada Tbk and Selamat Sempurna Tbk, you can compare the effects of market volatilities on Prodia Widyahusada and Selamat Sempurna 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 Prodia Widyahusada with a short position of Selamat Sempurna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prodia Widyahusada and Selamat Sempurna.
Diversification Opportunities for Prodia Widyahusada and Selamat Sempurna
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Prodia and Selamat is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Prodia Widyahusada Tbk and Selamat Sempurna Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selamat Sempurna Tbk and Prodia Widyahusada 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 Prodia Widyahusada Tbk are associated (or correlated) with Selamat Sempurna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selamat Sempurna Tbk has no effect on the direction of Prodia Widyahusada i.e., Prodia Widyahusada and Selamat Sempurna go up and down completely randomly.
Pair Corralation between Prodia Widyahusada and Selamat Sempurna
Assuming the 90 days trading horizon Prodia Widyahusada Tbk is expected to under-perform the Selamat Sempurna. But the stock apears to be less risky and, when comparing its historical volatility, Prodia Widyahusada Tbk is 1.36 times less risky than Selamat Sempurna. The stock trades about -0.14 of its potential returns per unit of risk. The Selamat Sempurna Tbk is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 200,561 in Selamat Sempurna Tbk on August 25, 2024 and sell it today you would lose (15,061) from holding Selamat Sempurna Tbk or give up 7.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prodia Widyahusada Tbk vs. Selamat Sempurna Tbk
Performance |
| Timeline |
| Prodia Widyahusada Tbk |
| Selamat Sempurna Tbk |
Prodia Widyahusada and Selamat Sempurna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prodia Widyahusada and Selamat Sempurna
The main advantage of trading using opposite Prodia Widyahusada and Selamat Sempurna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prodia Widyahusada position performs unexpectedly, Selamat Sempurna 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 Selamat Sempurna will offset losses from the drop in Selamat Sempurna's long position.| Prodia Widyahusada vs. Medikaloka Hermina PT | Prodia Widyahusada vs. Mitra Keluarga Karyasehat | Prodia Widyahusada vs. Siloam International Hospitals | Prodia Widyahusada vs. Saratoga Investama Sedaya |
| Selamat Sempurna vs. Surya Citra Media | Selamat Sempurna vs. Astra Otoparts Tbk | Selamat Sempurna vs. Ultra Jaya Milk | Selamat Sempurna vs. Ramayana Lestari Sentosa |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |