Correlation Between Siloam International and PT Data
Can any of the company-specific risk be diversified away by investing in both Siloam International and PT Data 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 Siloam International and PT Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siloam International Hospitals and PT Data Sinergitama, you can compare the effects of market volatilities on Siloam International and PT Data 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 Siloam International with a short position of PT Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siloam International and PT Data.
Diversification Opportunities for Siloam International and PT Data
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siloam and ELIT is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Siloam International Hospitals and PT Data Sinergitama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Data Sinergitama and Siloam International 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 Siloam International Hospitals are associated (or correlated) with PT Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Data Sinergitama has no effect on the direction of Siloam International i.e., Siloam International and PT Data go up and down completely randomly.
Pair Corralation between Siloam International and PT Data
Assuming the 90 days trading horizon Siloam International Hospitals is expected to under-perform the PT Data. But the stock apears to be less risky and, when comparing its historical volatility, Siloam International Hospitals is 1.42 times less risky than PT Data. The stock trades about -0.12 of its potential returns per unit of risk. The PT Data Sinergitama is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,500 in PT Data Sinergitama on October 26, 2024 and sell it today you would earn a total of 1,100 from holding PT Data Sinergitama or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Siloam International Hospitals vs. PT Data Sinergitama
Performance |
| Timeline |
| Siloam International |
| PT Data Sinergitama |
Siloam International and PT Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siloam International and PT Data
The main advantage of trading using opposite Siloam International and PT Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siloam International position performs unexpectedly, PT Data 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 Data will offset losses from the drop in PT Data's long position.| Siloam International vs. Astra Graphia Tbk | Siloam International vs. Hexindo Adiperkasa Tbk | Siloam International vs. Lautan Luas Tbk | Siloam International vs. Citra Marga Nusaphala |
| PT Data vs. Victoria Insurance Tbk | PT Data vs. Lippo General Insurance | PT Data vs. PT UBC Medical | PT Data vs. Dharma Polimetal 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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