Correlation Between Solusi Bangun and Semen Indonesia
Can any of the company-specific risk be diversified away by investing in both Solusi Bangun and Semen Indonesia 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 Solusi Bangun and Semen Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solusi Bangun Indonesia and Semen Indonesia Persero, you can compare the effects of market volatilities on Solusi Bangun and Semen Indonesia 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 Solusi Bangun with a short position of Semen Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solusi Bangun and Semen Indonesia.
Diversification Opportunities for Solusi Bangun and Semen Indonesia
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solusi and Semen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Solusi Bangun Indonesia and Semen Indonesia Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semen Indonesia Persero and Solusi Bangun 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 Solusi Bangun Indonesia are associated (or correlated) with Semen Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semen Indonesia Persero has no effect on the direction of Solusi Bangun i.e., Solusi Bangun and Semen Indonesia go up and down completely randomly.
Pair Corralation between Solusi Bangun and Semen Indonesia
Assuming the 90 days trading horizon Solusi Bangun Indonesia is expected to generate 0.67 times more return on investment than Semen Indonesia. However, Solusi Bangun Indonesia is 1.49 times less risky than Semen Indonesia. It trades about 0.08 of its potential returns per unit of risk. Semen Indonesia Persero is currently generating about -0.26 per unit of risk. If you would invest 72,500 in Solusi Bangun Indonesia on September 1, 2024 and sell it today you would earn a total of 1,500 from holding Solusi Bangun Indonesia or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solusi Bangun Indonesia vs. Semen Indonesia Persero
Performance |
| Timeline |
| Solusi Bangun Indonesia |
| Semen Indonesia Persero |
Solusi Bangun and Semen Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solusi Bangun and Semen Indonesia
The main advantage of trading using opposite Solusi Bangun and Semen Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solusi Bangun position performs unexpectedly, Semen Indonesia 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 Semen Indonesia will offset losses from the drop in Semen Indonesia's long position.| Solusi Bangun vs. Perusahaan Gas Negara | Solusi Bangun vs. Vale Indonesia Tbk | Solusi Bangun vs. Telkom Indonesia Tbk | Solusi Bangun vs. Mitra Pinasthika Mustika |
| Semen Indonesia vs. Indocement Tunggal Prakarsa | Semen Indonesia vs. United Tractors Tbk | Semen Indonesia vs. Jasa Marga Tbk | Semen Indonesia vs. PT Indofood Sukses |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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