Correlation Between PT Semen and Snap One

Can any of the company-specific risk be diversified away by investing in both PT Semen and Snap One 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 Snap One 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 Snap One Holdings, you can compare the effects of market volatilities on PT Semen and Snap One 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 Snap One. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Semen and Snap One.

Diversification Opportunities for PT Semen and Snap One

0.0

Correlation Coefficient

PT Semen  Snap One

Pay attention - limited upside

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

Pair Corralation between PT Semen and Snap One

If you would invest (100.00) in Snap One Holdings on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Snap One Holdings 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.  Snap One Holdings

PT Semen Indonesia

Risk-Adjusted Performance

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 unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Snap One Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Snap One Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Snap One is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with PT Semen and Snap One

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

The idea behind PT Semen Indonesia and Snap One Holdings 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.