Correlation Between Indo Acidatama and Slj Global
Can any of the company-specific risk be diversified away by investing in both Indo Acidatama and Slj Global 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 Indo Acidatama and Slj Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Acidatama Tbk and Slj Global Tbk, you can compare the effects of market volatilities on Indo Acidatama and Slj Global 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 Indo Acidatama with a short position of Slj Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Acidatama and Slj Global.
Diversification Opportunities for Indo Acidatama and Slj Global
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Indo and Slj is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Indo Acidatama Tbk and Slj Global Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slj Global Tbk and Indo Acidatama 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 Indo Acidatama Tbk are associated (or correlated) with Slj Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slj Global Tbk has no effect on the direction of Indo Acidatama i.e., Indo Acidatama and Slj Global go up and down completely randomly.
Pair Corralation between Indo Acidatama and Slj Global
Assuming the 90 days trading horizon Indo Acidatama Tbk is expected to under-perform the Slj Global. But the stock apears to be less risky and, when comparing its historical volatility, Indo Acidatama Tbk is 2.49 times less risky than Slj Global. The stock trades about -0.09 of its potential returns per unit of risk. The Slj Global Tbk is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 8,800 in Slj Global Tbk on September 7, 2024 and sell it today you would lose (100.00) from holding Slj Global Tbk or give up 1.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Indo Acidatama Tbk vs. Slj Global Tbk
Performance |
Timeline |
Indo Acidatama Tbk |
Slj Global Tbk |
Indo Acidatama and Slj Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Indo Acidatama and Slj Global
The main advantage of trading using opposite Indo Acidatama and Slj Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Acidatama position performs unexpectedly, Slj Global 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 Slj Global will offset losses from the drop in Slj Global's long position.Indo Acidatama vs. PT Sreeya Sewu | Indo Acidatama vs. Trias Sentosa Tbk | Indo Acidatama vs. Slj Global Tbk | Indo Acidatama vs. Suparma Tbk |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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