Correlation Between Selamat Sempurna and Ricky Putra
Can any of the company-specific risk be diversified away by investing in both Selamat Sempurna and Ricky Putra 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 Ricky Putra 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 Ricky Putra Globalindo, you can compare the effects of market volatilities on Selamat Sempurna and Ricky Putra 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 Ricky Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selamat Sempurna and Ricky Putra.
Diversification Opportunities for Selamat Sempurna and Ricky Putra
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Selamat and Ricky is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Selamat Sempurna Tbk and Ricky Putra Globalindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ricky Putra Globalindo 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 Ricky Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ricky Putra Globalindo has no effect on the direction of Selamat Sempurna i.e., Selamat Sempurna and Ricky Putra go up and down completely randomly.
Pair Corralation between Selamat Sempurna and Ricky Putra
Assuming the 90 days trading horizon Selamat Sempurna Tbk is expected to generate 0.67 times more return on investment than Ricky Putra. However, Selamat Sempurna Tbk is 1.49 times less risky than Ricky Putra. It trades about 0.0 of its potential returns per unit of risk. Ricky Putra Globalindo is currently generating about -0.15 per unit of risk. If you would invest 190,889 in Selamat Sempurna Tbk on August 28, 2024 and sell it today you would lose (389.00) from holding Selamat Sempurna Tbk or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selamat Sempurna Tbk vs. Ricky Putra Globalindo
Performance |
| Timeline |
| Selamat Sempurna Tbk |
| Ricky Putra Globalindo |
Selamat Sempurna and Ricky Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selamat Sempurna and Ricky Putra
The main advantage of trading using opposite Selamat Sempurna and Ricky Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selamat Sempurna position performs unexpectedly, Ricky Putra 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 Ricky Putra will offset losses from the drop in Ricky Putra'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 |
| Ricky Putra vs. Pan Brothers Tbk | Ricky Putra vs. Sunson Textile Manufacturer | Ricky Putra vs. Asia Pacific Fibers | Ricky Putra vs. Prima Alloy Steel |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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