Correlation Between Solusi Bangun and Slj Global
Can any of the company-specific risk be diversified away by investing in both Solusi Bangun and Slj Global 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 Slj Global 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 Slj Global Tbk, you can compare the effects of market volatilities on Solusi Bangun and Slj Global 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 Slj Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solusi Bangun and Slj Global.
Diversification Opportunities for Solusi Bangun and Slj Global
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Solusi and Slj is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Solusi Bangun Indonesia and Slj Global Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slj Global Tbk 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 Slj Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slj Global Tbk has no effect on the direction of Solusi Bangun i.e., Solusi Bangun and Slj Global go up and down completely randomly.
Pair Corralation between Solusi Bangun and Slj Global
Assuming the 90 days trading horizon Solusi Bangun Indonesia is expected to generate 1.55 times more return on investment than Slj Global. However, Solusi Bangun is 1.55 times more volatile than Slj Global Tbk. It trades about 0.06 of its potential returns per unit of risk. Slj Global Tbk is currently generating about -0.17 per unit of risk. If you would invest 67,500 in Solusi Bangun Indonesia on September 2, 2024 and sell it today you would earn a total of 6,500 from holding Solusi Bangun Indonesia or generate 9.63% 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. Slj Global Tbk
Performance |
| Timeline |
| Solusi Bangun Indonesia |
| Slj Global Tbk |
Solusi Bangun and Slj Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solusi Bangun and Slj Global
The main advantage of trading using opposite Solusi Bangun and Slj Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solusi Bangun position performs unexpectedly, Slj Global 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 Slj Global will offset losses from the drop in Slj Global's long position.| Solusi Bangun vs. Perusahaan Gas Negara | Solusi Bangun vs. Telkom Indonesia Tbk | Solusi Bangun vs. Mitra Pinasthika Mustika | Solusi Bangun vs. Jakarta Int Hotels |
| Slj Global vs. Perusahaan Gas Negara | Slj Global vs. Telkom Indonesia Tbk | Slj Global vs. Mitra Pinasthika Mustika | Slj Global vs. Jakarta Int Hotels |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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