Correlation Between PT Semen and Acceleware

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

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

Diversification Opportunities for PT Semen and Acceleware

0.68

Correlation Coefficient

PT Semen  Acceleware

Poor diversification

The 3 months correlation between PSGTF and Acceleware is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding PT Semen Indonesia and Acceleware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acceleware and PT Semen 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 PT Semen Indonesia are associated (or correlated) with Acceleware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acceleware has no effect on the direction of PT Semen i.e., PT Semen and Acceleware go up and down completely randomly.

Pair Corralation between PT Semen and Acceleware

If you would invest  7.50  in Acceleware on October 22, 2024 and sell it today you would earn a total of  0.00  from holding Acceleware or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	94.74%
Values	Daily Returns

PT Semen Indonesia  vs.  Acceleware

PT Semen Indonesia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Semen Indonesia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Acceleware

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acceleware has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with PT Semen and Acceleware

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

The idea behind PT Semen Indonesia and Acceleware 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.