Correlation Between Salim Ivomas and Steel Pipe
Can any of the company-specific risk be diversified away by investing in both Salim Ivomas and Steel Pipe 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 Salim Ivomas and Steel Pipe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salim Ivomas Pratama and Steel Pipe Industry, you can compare the effects of market volatilities on Salim Ivomas and Steel Pipe 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 Salim Ivomas with a short position of Steel Pipe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salim Ivomas and Steel Pipe.
Diversification Opportunities for Salim Ivomas and Steel Pipe
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Salim and Steel is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Salim Ivomas Pratama and Steel Pipe Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Pipe Industry and Salim Ivomas 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 Salim Ivomas Pratama are associated (or correlated) with Steel Pipe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Pipe Industry has no effect on the direction of Salim Ivomas i.e., Salim Ivomas and Steel Pipe go up and down completely randomly.
Pair Corralation between Salim Ivomas and Steel Pipe
Assuming the 90 days trading horizon Salim Ivomas Pratama is expected to under-perform the Steel Pipe. In addition to that, Salim Ivomas is 1.64 times more volatile than Steel Pipe Industry. It trades about -0.25 of its total potential returns per unit of risk. Steel Pipe Industry is currently generating about -0.37 per unit of volatility. If you would invest 30,200 in Steel Pipe Industry on August 31, 2024 and sell it today you would lose (1,800) from holding Steel Pipe Industry or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salim Ivomas Pratama vs. Steel Pipe Industry
Performance |
| Timeline |
| Salim Ivomas Pratama |
| Steel Pipe Industry |
Salim Ivomas and Steel Pipe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salim Ivomas and Steel Pipe
The main advantage of trading using opposite Salim Ivomas and Steel Pipe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salim Ivomas position performs unexpectedly, Steel Pipe 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 Steel Pipe will offset losses from the drop in Steel Pipe's long position.| Salim Ivomas vs. Indofood Cbp Sukses | Salim Ivomas vs. Bank BRISyariah Tbk | Salim Ivomas vs. Mitra Pinasthika Mustika | Salim Ivomas vs. Jakarta Int Hotels |
| Steel Pipe vs. Perusahaan Gas Negara | Steel Pipe vs. Vale Indonesia Tbk | Steel Pipe vs. Telkom Indonesia Tbk | Steel Pipe vs. Mitra Pinasthika Mustika |
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 CEOs Directory module to screen CEOs from public companies around the world.
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