Correlation Between Semacom Integrated and Wir Asia
Can any of the company-specific risk be diversified away by investing in both Semacom Integrated and Wir Asia 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 Wir Asia 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 Wir Asia Tbk, you can compare the effects of market volatilities on Semacom Integrated and Wir Asia 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 Wir Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semacom Integrated and Wir Asia.
Diversification Opportunities for Semacom Integrated and Wir Asia
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Semacom and Wir is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Semacom Integrated Tbk and Wir Asia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wir Asia Tbk 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 Wir Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wir Asia Tbk has no effect on the direction of Semacom Integrated i.e., Semacom Integrated and Wir Asia go up and down completely randomly.
Pair Corralation between Semacom Integrated and Wir Asia
Assuming the 90 days trading horizon Semacom Integrated Tbk is expected to generate 1.05 times more return on investment than Wir Asia. However, Semacom Integrated is 1.05 times more volatile than Wir Asia Tbk. It trades about 0.02 of its potential returns per unit of risk. Wir Asia Tbk is currently generating about -0.01 per unit of risk. If you would invest 8,000 in Semacom Integrated Tbk on September 2, 2024 and sell it today you would earn a total of 600.00 from holding Semacom Integrated Tbk or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semacom Integrated Tbk vs. Wir Asia Tbk
Performance |
| Timeline |
| Semacom Integrated Tbk |
| Wir Asia Tbk |
Semacom Integrated and Wir Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semacom Integrated and Wir Asia
The main advantage of trading using opposite Semacom Integrated and Wir Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semacom Integrated position performs unexpectedly, Wir Asia 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 Wir Asia will offset losses from the drop in Wir Asia's long position.| Semacom Integrated vs. PT Dewi Shri | Semacom Integrated vs. PT Data Sinergitama | Semacom Integrated vs. PAM Mineral Tbk | Semacom Integrated vs. Autopedia Sukses Lestari |
| Wir Asia vs. GoTo Gojek Tokopedia | Wir Asia vs. Adaro Minerals Indonesia | Wir Asia vs. PT Bukalapak | Wir Asia vs. Bank Artos 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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