Correlation Between PT Semen and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both PT Semen and Comstock Holding 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 PT Semen and Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Semen Indonesia and Comstock Holding Companies, you can compare the effects of market volatilities on PT Semen and Comstock Holding 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 PT Semen with a short position of Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Semen and Comstock Holding.
Diversification Opportunities for PT Semen and Comstock Holding
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSGTF and Comstock is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding PT Semen Indonesia and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com and PT Semen 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 PT Semen Indonesia are associated (or correlated) with Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of PT Semen i.e., PT Semen and Comstock Holding go up and down completely randomly.
Pair Corralation between PT Semen and Comstock Holding
Assuming the 90 days horizon PT Semen Indonesia is expected to under-perform the Comstock Holding. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Semen Indonesia is 1.68 times less risky than Comstock Holding. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Comstock Holding Companies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 430.00 in Comstock Holding Companies on September 15, 2024 and sell it today you would earn a total of 410.00 from holding Comstock Holding Companies or generate 95.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.27% |
| Values | Daily Returns |
PT Semen Indonesia vs. Comstock Holding Companies
Performance |
| Timeline |
| PT Semen Indonesia |
| Comstock Holding Com |
PT Semen and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Semen and Comstock Holding
The main advantage of trading using opposite PT Semen and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Semen position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.| PT Semen vs. Comstock Holding Companies | PT Semen vs. Gentex | PT Semen vs. PACCAR Inc | PT Semen vs. CapitaLand Investment Limited |
| Comstock Holding vs. Arhaus Inc | Comstock Holding vs. Floor Decor Holdings | Comstock Holding vs. Kingfisher plc | Comstock Holding vs. Haverty Furniture Companies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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