Correlation Between Semen Indonesia and Slj Global
Can any of the company-specific risk be diversified away by investing in both Semen Indonesia 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 Semen Indonesia and Slj Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semen Indonesia Persero and Slj Global Tbk, you can compare the effects of market volatilities on Semen Indonesia 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 Semen Indonesia with a short position of Slj Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semen Indonesia and Slj Global.
Diversification Opportunities for Semen Indonesia and Slj Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Semen and Slj is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Semen Indonesia Persero 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 Semen 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 Semen Indonesia Persero 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 Semen Indonesia i.e., Semen Indonesia and Slj Global go up and down completely randomly.
Pair Corralation between Semen Indonesia and Slj Global
Assuming the 90 days trading horizon Semen Indonesia Persero is expected to under-perform the Slj Global. But the stock apears to be less risky and, when comparing its historical volatility, Semen Indonesia Persero is 2.22 times less risky than Slj Global. The stock trades about -0.06 of its potential returns per unit of risk. The Slj Global Tbk is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 17,400 in Slj Global Tbk on September 3, 2024 and sell it today you would lose (9,400) from holding Slj Global Tbk or give up 54.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Semen Indonesia Persero vs. Slj Global Tbk
Performance |
| Timeline |
| Semen Indonesia Persero |
| Slj Global Tbk |
Semen Indonesia and Slj Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semen Indonesia and Slj Global
The main advantage of trading using opposite Semen Indonesia and Slj Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semen Indonesia 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.| Semen Indonesia vs. Indocement Tunggal Prakarsa | Semen Indonesia vs. United Tractors Tbk | Semen Indonesia vs. Jasa Marga Tbk | Semen Indonesia vs. PT Indofood Sukses |
| Slj Global vs. Timah Persero Tbk | Slj Global vs. Semen Indonesia Persero | 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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