Correlation Between Wir Asia and Semacom Integrated
Can any of the company-specific risk be diversified away by investing in both Wir Asia and Semacom Integrated 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 Wir Asia and Semacom Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wir Asia Tbk and Semacom Integrated Tbk, you can compare the effects of market volatilities on Wir Asia and Semacom Integrated 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 Wir Asia with a short position of Semacom Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wir Asia and Semacom Integrated.
Diversification Opportunities for Wir Asia and Semacom Integrated
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wir and Semacom is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wir Asia Tbk and Semacom Integrated Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semacom Integrated Tbk and Wir Asia 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 Wir Asia Tbk are associated (or correlated) with Semacom Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semacom Integrated Tbk has no effect on the direction of Wir Asia i.e., Wir Asia and Semacom Integrated go up and down completely randomly.
Pair Corralation between Wir Asia and Semacom Integrated
Assuming the 90 days trading horizon Wir Asia Tbk is expected to under-perform the Semacom Integrated. In addition to that, Wir Asia is 1.4 times more volatile than Semacom Integrated Tbk. It trades about -0.44 of its total potential returns per unit of risk. Semacom Integrated Tbk is currently generating about -0.15 per unit of volatility. If you would invest 9,300 in Semacom Integrated Tbk on August 30, 2024 and sell it today you would lose (700.00) from holding Semacom Integrated Tbk or give up 7.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wir Asia Tbk vs. Semacom Integrated Tbk
Performance |
| Timeline |
| Wir Asia Tbk |
| Semacom Integrated Tbk |
Wir Asia and Semacom Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wir Asia and Semacom Integrated
The main advantage of trading using opposite Wir Asia and Semacom Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wir Asia position performs unexpectedly, Semacom Integrated 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 Semacom Integrated will offset losses from the drop in Semacom Integrated's long position.| Wir Asia vs. Indointernet Tbk PT | Wir Asia vs. Multipolar Technology Tbk | Wir Asia vs. Indosterling Technomedia Tbk | Wir Asia vs. PT Data Sinergitama |
| Semacom Integrated vs. Bank Central Asia | Semacom Integrated vs. Bank Rakyat Indonesia | Semacom Integrated vs. Bayan Resources Tbk | Semacom Integrated vs. Bank Mandiri Persero |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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