Correlation Between PT Semen and PPC
Can any of the company-specific risk be diversified away by investing in both PT Semen and PPC 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 PPC 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 PPC Ltd ADR, you can compare the effects of market volatilities on PT Semen and PPC 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 PPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Semen and PPC.
Diversification Opportunities for PT Semen and PPC
Pay attention - limited upside
The 3 months correlation between PSGTF and PPC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Semen Indonesia and PPC Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPC Ltd ADR 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 PPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPC Ltd ADR has no effect on the direction of PT Semen i.e., PT Semen and PPC go up and down completely randomly.
Pair Corralation between PT Semen and PPC
Assuming the 90 days horizon PT Semen Indonesia is expected to under-perform the PPC. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Semen Indonesia is 1.98 times less risky than PPC. The pink sheet trades about -0.1 of its potential returns per unit of risk. The PPC Ltd ADR is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 43.00 in PPC Ltd ADR on November 3, 2024 and sell it today you would lose (10.00) from holding PPC Ltd ADR or give up 23.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 43.32% |
| Values | Daily Returns |
PT Semen Indonesia vs. PPC Ltd ADR
Performance |
| Timeline |
| PT Semen Indonesia |
| PPC Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Semen and PPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Semen and PPC
The main advantage of trading using opposite PT Semen and PPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Semen position performs unexpectedly, PPC 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 PPC will offset losses from the drop in PPC's long position.| PT Semen vs. Silicon Gaming | PT Semen vs. Visteon Corp | PT Semen vs. Hochschild Mining PLC | PT Semen vs. Marine Products |
| PPC vs. Wienerberger Baustoffindustrie | PPC vs. China National Building | PPC vs. Anhui Conch Cement | PPC vs. Lafargeholcim Ltd ADR |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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