Correlation Between Suparma Tbk and Slj Global
Can any of the company-specific risk be diversified away by investing in both Suparma Tbk 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 Suparma Tbk and Slj Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suparma Tbk and Slj Global Tbk, you can compare the effects of market volatilities on Suparma Tbk 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 Suparma Tbk with a short position of Slj Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suparma Tbk and Slj Global.
Diversification Opportunities for Suparma Tbk and Slj Global
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suparma and Slj is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Suparma Tbk 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 Suparma Tbk 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 Suparma Tbk 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 Suparma Tbk i.e., Suparma Tbk and Slj Global go up and down completely randomly.
Pair Corralation between Suparma Tbk and Slj Global
Assuming the 90 days trading horizon Suparma Tbk is expected to under-perform the Slj Global. But the stock apears to be less risky and, when comparing its historical volatility, Suparma Tbk is 3.81 times less risky than Slj Global. The stock trades about -0.07 of its potential returns per unit of risk. The Slj Global Tbk is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,700 in Slj Global Tbk on November 27, 2024 and sell it today you would earn a total of 400.00 from holding Slj Global Tbk or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suparma Tbk vs. Slj Global Tbk
Performance |
| Timeline |
| Suparma Tbk |
| Slj Global Tbk |
Suparma Tbk and Slj Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suparma Tbk and Slj Global
The main advantage of trading using opposite Suparma Tbk and Slj Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suparma Tbk 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.| Suparma Tbk vs. Trias Sentosa Tbk | Suparma Tbk vs. Slj Global Tbk | Suparma Tbk vs. PT Sreeya Sewu | Suparma Tbk vs. Indo Acidatama Tbk |
| Slj Global vs. Solusi Bangun Indonesia | Slj Global vs. Bakrie Sumatera Plantations | Slj Global vs. Total Bangun Persada | Slj Global vs. Berlian Laju Tanker |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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