Correlation Between Solusi Bangun and Tempo Scan
Can any of the company-specific risk be diversified away by investing in both Solusi Bangun and Tempo Scan 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 Tempo Scan 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 Tempo Scan Pacific, you can compare the effects of market volatilities on Solusi Bangun and Tempo Scan 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 Tempo Scan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solusi Bangun and Tempo Scan.
Diversification Opportunities for Solusi Bangun and Tempo Scan
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Solusi and Tempo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Solusi Bangun Indonesia and Tempo Scan Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tempo Scan Pacific 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 Tempo Scan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tempo Scan Pacific has no effect on the direction of Solusi Bangun i.e., Solusi Bangun and Tempo Scan go up and down completely randomly.
Pair Corralation between Solusi Bangun and Tempo Scan
Assuming the 90 days trading horizon Solusi Bangun Indonesia is expected to under-perform the Tempo Scan. In addition to that, Solusi Bangun is 1.34 times more volatile than Tempo Scan Pacific. It trades about -0.04 of its total potential returns per unit of risk. Tempo Scan Pacific is currently generating about 0.09 per unit of volatility. If you would invest 119,115 in Tempo Scan Pacific on September 2, 2024 and sell it today you would earn a total of 132,885 from holding Tempo Scan Pacific or generate 111.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solusi Bangun Indonesia vs. Tempo Scan Pacific
Performance |
| Timeline |
| Solusi Bangun Indonesia |
| Tempo Scan Pacific |
Solusi Bangun and Tempo Scan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solusi Bangun and Tempo Scan
The main advantage of trading using opposite Solusi Bangun and Tempo Scan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solusi Bangun position performs unexpectedly, Tempo Scan 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 Tempo Scan will offset losses from the drop in Tempo Scan'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 |
| Tempo Scan vs. Total Bangun Persada | Tempo Scan vs. Tunas Baru Lampung | Tempo Scan vs. Solusi Bangun Indonesia | Tempo Scan vs. Ramayana Lestari Sentosa |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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