Correlation Between Abm Investama and Tembaga Mulia
Can any of the company-specific risk be diversified away by investing in both Abm Investama and Tembaga Mulia 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 Abm Investama and Tembaga Mulia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abm Investama Tbk and Tembaga Mulia Semanan, you can compare the effects of market volatilities on Abm Investama and Tembaga Mulia 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 Abm Investama with a short position of Tembaga Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abm Investama and Tembaga Mulia.
Diversification Opportunities for Abm Investama and Tembaga Mulia
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Abm and Tembaga is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Abm Investama Tbk and Tembaga Mulia Semanan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tembaga Mulia Semanan and Abm Investama 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 Abm Investama Tbk are associated (or correlated) with Tembaga Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tembaga Mulia Semanan has no effect on the direction of Abm Investama i.e., Abm Investama and Tembaga Mulia go up and down completely randomly.
Pair Corralation between Abm Investama and Tembaga Mulia
Assuming the 90 days trading horizon Abm Investama Tbk is expected to under-perform the Tembaga Mulia. In addition to that, Abm Investama is 1.36 times more volatile than Tembaga Mulia Semanan. It trades about -0.27 of its total potential returns per unit of risk. Tembaga Mulia Semanan is currently generating about -0.08 per unit of volatility. If you would invest 95,500 in Tembaga Mulia Semanan on September 1, 2024 and sell it today you would lose (3,000) from holding Tembaga Mulia Semanan or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Abm Investama Tbk vs. Tembaga Mulia Semanan
Performance |
| Timeline |
| Abm Investama Tbk |
| Tembaga Mulia Semanan |
Abm Investama and Tembaga Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abm Investama and Tembaga Mulia
The main advantage of trading using opposite Abm Investama and Tembaga Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abm Investama position performs unexpectedly, Tembaga Mulia 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 Tembaga Mulia will offset losses from the drop in Tembaga Mulia's long position.| Abm Investama vs. Baramulti Suksessarana Tbk | Abm Investama vs. Mitrabara Adiperdana PT | Abm Investama vs. Sumber Alfaria Trijaya | Abm Investama vs. Surya Esa Perkasa |
| Tembaga Mulia vs. Matahari Department Store | Tembaga Mulia vs. Multi Medika Internasional | Tembaga Mulia vs. Visi Media Asia | Tembaga Mulia vs. Bayan Resources Tbk |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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