Correlation Between Salim Ivomas and Semen Baturaja

Can any of the company-specific risk be diversified away by investing in both Salim Ivomas and Semen Baturaja 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 Salim Ivomas and Semen Baturaja into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Salim Ivomas Pratama and Semen Baturaja Persero, you can compare the effects of market volatilities on Salim Ivomas and Semen Baturaja 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 Salim Ivomas with a short position of Semen Baturaja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salim Ivomas and Semen Baturaja.

Diversification Opportunities for Salim Ivomas and Semen Baturaja

0.0

Correlation Coefficient

Salim Ivomas  Semen Baturaja

Pay attention - limited upside

The 3 months correlation between Salim and Semen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salim Ivomas Pratama and Semen Baturaja Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semen Baturaja Persero and Salim Ivomas 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 Salim Ivomas Pratama are associated (or correlated) with Semen Baturaja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semen Baturaja Persero has no effect on the direction of Salim Ivomas i.e., Salim Ivomas and Semen Baturaja go up and down completely randomly.

Pair Corralation between Salim Ivomas and Semen Baturaja

If you would invest (100.00) in Salim Ivomas Pratama on March 5, 2024 and sell it today you would earn a total of  100.00  from holding Salim Ivomas Pratama or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Salim Ivomas Pratama  vs.  Semen Baturaja Persero

Salim Ivomas Pratama

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Salim Ivomas Pratama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Salim Ivomas is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Semen Baturaja Persero

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Semen Baturaja Persero has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in July 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Salim Ivomas and Semen Baturaja

The main advantage of trading using opposite Salim Ivomas and Semen Baturaja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salim Ivomas position performs unexpectedly, Semen Baturaja 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 Semen Baturaja will offset losses from the drop in Semen Baturaja's long position.

The idea behind Salim Ivomas Pratama and Semen Baturaja Persero pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.