Correlation Between Selamat Sempurna and Panca Budi
Can any of the company-specific risk be diversified away by investing in both Selamat Sempurna and Panca Budi 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 Selamat Sempurna and Panca Budi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selamat Sempurna Tbk and Panca Budi Idaman, you can compare the effects of market volatilities on Selamat Sempurna and Panca Budi 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 Selamat Sempurna with a short position of Panca Budi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selamat Sempurna and Panca Budi.
Diversification Opportunities for Selamat Sempurna and Panca Budi
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Selamat and Panca is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Selamat Sempurna Tbk and Panca Budi Idaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panca Budi Idaman and Selamat Sempurna 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 Selamat Sempurna Tbk are associated (or correlated) with Panca Budi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panca Budi Idaman has no effect on the direction of Selamat Sempurna i.e., Selamat Sempurna and Panca Budi go up and down completely randomly.
Pair Corralation between Selamat Sempurna and Panca Budi
Assuming the 90 days trading horizon Selamat Sempurna Tbk is expected to under-perform the Panca Budi. But the stock apears to be less risky and, when comparing its historical volatility, Selamat Sempurna Tbk is 2.02 times less risky than Panca Budi. The stock trades about -0.02 of its potential returns per unit of risk. The Panca Budi Idaman is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 48,200 in Panca Budi Idaman on August 28, 2024 and sell it today you would earn a total of 3,800 from holding Panca Budi Idaman or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selamat Sempurna Tbk vs. Panca Budi Idaman
Performance |
| Timeline |
| Selamat Sempurna Tbk |
| Panca Budi Idaman |
Selamat Sempurna and Panca Budi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selamat Sempurna and Panca Budi
The main advantage of trading using opposite Selamat Sempurna and Panca Budi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selamat Sempurna position performs unexpectedly, Panca Budi 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 Panca Budi will offset losses from the drop in Panca Budi's long position.| Selamat Sempurna vs. Surya Citra Media | Selamat Sempurna vs. Astra Otoparts Tbk | Selamat Sempurna vs. Ultra Jaya Milk | Selamat Sempurna vs. Ramayana Lestari Sentosa |
| Panca Budi vs. Mitrabara Adiperdana PT | Panca Budi vs. Mark Dynamics Indonesia | Panca Budi vs. Prodia Widyahusada Tbk | Panca Budi vs. Selamat Sempurna Tbk |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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