Correlation Between Semacom Integrated and PT Jobubu
Can any of the company-specific risk be diversified away by investing in both Semacom Integrated and PT Jobubu 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 Semacom Integrated and PT Jobubu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semacom Integrated Tbk and PT Jobubu Jarum, you can compare the effects of market volatilities on Semacom Integrated and PT Jobubu 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 Semacom Integrated with a short position of PT Jobubu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semacom Integrated and PT Jobubu.
Diversification Opportunities for Semacom Integrated and PT Jobubu
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Semacom and BEER is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Semacom Integrated Tbk and PT Jobubu Jarum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jobubu Jarum and Semacom Integrated 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 Semacom Integrated Tbk are associated (or correlated) with PT Jobubu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jobubu Jarum has no effect on the direction of Semacom Integrated i.e., Semacom Integrated and PT Jobubu go up and down completely randomly.
Pair Corralation between Semacom Integrated and PT Jobubu
Assuming the 90 days trading horizon Semacom Integrated Tbk is expected to generate 1.54 times more return on investment than PT Jobubu. However, Semacom Integrated is 1.54 times more volatile than PT Jobubu Jarum. It trades about 0.02 of its potential returns per unit of risk. PT Jobubu Jarum is currently generating about -0.07 per unit of risk. If you would invest 8,100 in Semacom Integrated Tbk on September 12, 2024 and sell it today you would earn a total of 600.00 from holding Semacom Integrated Tbk or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semacom Integrated Tbk vs. PT Jobubu Jarum
Performance |
| Timeline |
| Semacom Integrated Tbk |
| PT Jobubu Jarum |
Semacom Integrated and PT Jobubu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semacom Integrated and PT Jobubu
The main advantage of trading using opposite Semacom Integrated and PT Jobubu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semacom Integrated position performs unexpectedly, PT Jobubu 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 PT Jobubu will offset losses from the drop in PT Jobubu's long position.| Semacom Integrated vs. RMK Energy PT | Semacom Integrated vs. Adaro Minerals Indonesia | Semacom Integrated vs. Sumber Global Energy | Semacom Integrated vs. PT Hasnur Internasional |
| PT Jobubu vs. Bank Central Asia | PT Jobubu vs. Bank Rakyat Indonesia | PT Jobubu vs. Bayan Resources Tbk | PT Jobubu vs. Bank Mandiri Persero |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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