Correlation Between Salim Ivomas and Kalbe Farma
Can any of the company-specific risk be diversified away by investing in both Salim Ivomas and Kalbe Farma 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 Kalbe Farma 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 Kalbe Farma Tbk, you can compare the effects of market volatilities on Salim Ivomas and Kalbe Farma 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 Kalbe Farma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salim Ivomas and Kalbe Farma.
Diversification Opportunities for Salim Ivomas and Kalbe Farma
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Salim and Kalbe is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Salim Ivomas Pratama and Kalbe Farma Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalbe Farma Tbk 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 Kalbe Farma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalbe Farma Tbk has no effect on the direction of Salim Ivomas i.e., Salim Ivomas and Kalbe Farma go up and down completely randomly.
Pair Corralation between Salim Ivomas and Kalbe Farma
Assuming the 90 days trading horizon Salim Ivomas Pratama is expected to generate 0.78 times more return on investment than Kalbe Farma. However, Salim Ivomas Pratama is 1.28 times less risky than Kalbe Farma. It trades about -0.25 of its potential returns per unit of risk. Kalbe Farma Tbk is currently generating about -0.2 per unit of risk. If you would invest 42,000 in Salim Ivomas Pratama on August 31, 2024 and sell it today you would lose (2,800) from holding Salim Ivomas Pratama or give up 6.67% 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. Kalbe Farma Tbk
Performance |
| Timeline |
| Salim Ivomas Pratama |
| Kalbe Farma Tbk |
Salim Ivomas and Kalbe Farma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salim Ivomas and Kalbe Farma
The main advantage of trading using opposite Salim Ivomas and Kalbe Farma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salim Ivomas position performs unexpectedly, Kalbe Farma 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 Kalbe Farma will offset losses from the drop in Kalbe Farma'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 |
| Kalbe Farma vs. PT Indofood Sukses | Kalbe Farma vs. Unilever Indonesia Tbk | Kalbe Farma vs. Semen Indonesia Persero | Kalbe Farma vs. United Tractors 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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