Correlation Between PT Semen and Holcim
Can any of the company-specific risk be diversified away by investing in both PT Semen and Holcim 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 Holcim 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 Holcim, you can compare the effects of market volatilities on PT Semen and Holcim 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 Holcim. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Semen and Holcim.
Diversification Opportunities for PT Semen and Holcim
Very good diversification
The 3 months correlation between PSGTF and Holcim is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PT Semen Indonesia and Holcim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holcim 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 Holcim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holcim has no effect on the direction of PT Semen i.e., PT Semen and Holcim go up and down completely randomly.
Pair Corralation between PT Semen and Holcim
Assuming the 90 days horizon PT Semen Indonesia is expected to under-perform the Holcim. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Semen Indonesia is 1.0 times less risky than Holcim. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Holcim is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,950 in Holcim on September 2, 2025 and sell it today you would earn a total of 1,325 from holding Holcim or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Semen Indonesia vs. Holcim
Performance |
| Timeline |
| PT Semen Indonesia |
| Holcim |
PT Semen and Holcim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Semen and Holcim
The main advantage of trading using opposite PT Semen and Holcim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Semen position performs unexpectedly, Holcim 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 Holcim will offset losses from the drop in Holcim's long position.| PT Semen vs. Gaztransport Technigaz SA | PT Semen vs. EVO Transportation Energy | PT Semen vs. Dicks Sporting Goods | PT Semen vs. Renewable Energy Trade |
| Holcim vs. Jones Soda Co | Holcim vs. Borr Drilling | Holcim vs. Delta Apparel, | Holcim vs. High Performance Beverages |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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