Correlation Between Samudera Indonesia and Soechi Lines
Can any of the company-specific risk be diversified away by investing in both Samudera Indonesia and Soechi Lines 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 Samudera Indonesia and Soechi Lines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samudera Indonesia Tbk and Soechi Lines Tbk, you can compare the effects of market volatilities on Samudera Indonesia and Soechi Lines 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 Samudera Indonesia with a short position of Soechi Lines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samudera Indonesia and Soechi Lines.
Diversification Opportunities for Samudera Indonesia and Soechi Lines
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samudera and Soechi is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Samudera Indonesia Tbk and Soechi Lines Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soechi Lines Tbk and Samudera Indonesia 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 Samudera Indonesia Tbk are associated (or correlated) with Soechi Lines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soechi Lines Tbk has no effect on the direction of Samudera Indonesia i.e., Samudera Indonesia and Soechi Lines go up and down completely randomly.
Pair Corralation between Samudera Indonesia and Soechi Lines
Assuming the 90 days trading horizon Samudera Indonesia Tbk is expected to under-perform the Soechi Lines. In addition to that, Samudera Indonesia is 1.16 times more volatile than Soechi Lines Tbk. It trades about -0.01 of its total potential returns per unit of risk. Soechi Lines Tbk is currently generating about 0.0 per unit of volatility. If you would invest 18,400 in Soechi Lines Tbk on September 4, 2024 and sell it today you would lose (1,300) from holding Soechi Lines Tbk or give up 7.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samudera Indonesia Tbk vs. Soechi Lines Tbk
Performance |
| Timeline |
| Samudera Indonesia Tbk |
| Soechi Lines Tbk |
Samudera Indonesia and Soechi Lines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samudera Indonesia and Soechi Lines
The main advantage of trading using opposite Samudera Indonesia and Soechi Lines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samudera Indonesia position performs unexpectedly, Soechi Lines 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 Soechi Lines will offset losses from the drop in Soechi Lines' long position.| Samudera Indonesia vs. PT Temas Tbk | Samudera Indonesia vs. Petrosea Tbk | Samudera Indonesia vs. Rig Tenders Tbk | Samudera Indonesia vs. Rukun Raharja Tbk |
| Soechi Lines vs. Weha Transportasi Indonesia | Soechi Lines vs. Mitra Pinasthika Mustika | Soechi Lines vs. Jakarta Int Hotels | Soechi Lines vs. Asuransi Harta Aman |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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