Correlation Between PT Semen and EMagin
Can any of the company-specific risk be diversified away by investing in both PT Semen and EMagin 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 EMagin 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 EMagin, you can compare the effects of market volatilities on PT Semen and EMagin 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 EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Semen and EMagin.
Diversification Opportunities for PT Semen and EMagin
Pay attention - limited upside
The 3 months correlation between PSGTF and EMagin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Semen Indonesia and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin 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 EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of PT Semen i.e., PT Semen and EMagin go up and down completely randomly.
Pair Corralation between PT Semen and EMagin
If you would invest (100.00) in EMagin on December 3, 2024 and sell it today you would earn a total of 100.00 from holding EMagin 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 |
PT Semen Indonesia vs. EMagin
Performance |
Timeline |
PT Semen Indonesia |
EMagin |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PT Semen and EMagin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Semen and EMagin
The main advantage of trading using opposite PT Semen and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Semen position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.PT Semen vs. Hertz Global Hldgs | PT Semen vs. Sysco | PT Semen vs. McGrath RentCorp | PT Semen vs. Paranovus Entertainment Technology |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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