Correlation Between Sampoerna Agro and Campina Ice
Can any of the company-specific risk be diversified away by investing in both Sampoerna Agro and Campina Ice 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 Sampoerna Agro and Campina Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sampoerna Agro Tbk and Campina Ice Cream, you can compare the effects of market volatilities on Sampoerna Agro and Campina Ice 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 Sampoerna Agro with a short position of Campina Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampoerna Agro and Campina Ice.
Diversification Opportunities for Sampoerna Agro and Campina Ice
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sampoerna and Campina is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sampoerna Agro Tbk and Campina Ice Cream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campina Ice Cream and Sampoerna Agro 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 Sampoerna Agro Tbk are associated (or correlated) with Campina Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campina Ice Cream has no effect on the direction of Sampoerna Agro i.e., Sampoerna Agro and Campina Ice go up and down completely randomly.
Pair Corralation between Sampoerna Agro and Campina Ice
Assuming the 90 days trading horizon Sampoerna Agro Tbk is expected to generate 0.25 times more return on investment than Campina Ice. However, Sampoerna Agro Tbk is 3.93 times less risky than Campina Ice. It trades about -0.04 of its potential returns per unit of risk. Campina Ice Cream is currently generating about -0.41 per unit of risk. If you would invest 214,000 in Sampoerna Agro Tbk on November 28, 2024 and sell it today you would lose (1,000.00) from holding Sampoerna Agro Tbk or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sampoerna Agro Tbk vs. Campina Ice Cream
Performance |
| Timeline |
| Sampoerna Agro Tbk |
| Campina Ice Cream |
Sampoerna Agro and Campina Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampoerna Agro and Campina Ice
The main advantage of trading using opposite Sampoerna Agro and Campina Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampoerna Agro position performs unexpectedly, Campina Ice 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 Campina Ice will offset losses from the drop in Campina Ice's long position.| Sampoerna Agro vs. Bakrie Sumatera Plantations | Sampoerna Agro vs. Perusahaan Perkebunan London | Sampoerna Agro vs. Astra Agro Lestari | Sampoerna Agro vs. Tunas Baru Lampung |
| Campina Ice vs. Sariguna Primatirta PT | Campina Ice vs. Garudafood Putra Putri | Campina Ice vs. Buyung Poetra Sembada | Campina Ice vs. Integra Indocabinet Tbk |
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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