Correlation Between Adira Dinamika and Trimegah Securities
Can any of the company-specific risk be diversified away by investing in both Adira Dinamika and Trimegah Securities 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 Adira Dinamika and Trimegah Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adira Dinamika Multi and Trimegah Securities Tbk, you can compare the effects of market volatilities on Adira Dinamika and Trimegah Securities 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 Adira Dinamika with a short position of Trimegah Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adira Dinamika and Trimegah Securities.
Diversification Opportunities for Adira Dinamika and Trimegah Securities
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Adira and Trimegah is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Adira Dinamika Multi and Trimegah Securities Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Securities Tbk and Adira Dinamika 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 Adira Dinamika Multi are associated (or correlated) with Trimegah Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Securities Tbk has no effect on the direction of Adira Dinamika i.e., Adira Dinamika and Trimegah Securities go up and down completely randomly.
Pair Corralation between Adira Dinamika and Trimegah Securities
Assuming the 90 days trading horizon Adira Dinamika Multi is expected to under-perform the Trimegah Securities. But the stock apears to be less risky and, when comparing its historical volatility, Adira Dinamika Multi is 4.6 times less risky than Trimegah Securities. The stock trades about -0.24 of its potential returns per unit of risk. The Trimegah Securities Tbk is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 36,600 in Trimegah Securities Tbk on October 25, 2024 and sell it today you would earn a total of 1,400 from holding Trimegah Securities Tbk or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Adira Dinamika Multi vs. Trimegah Securities Tbk
Performance |
| Timeline |
| Adira Dinamika Multi |
| Trimegah Securities Tbk |
Adira Dinamika and Trimegah Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adira Dinamika and Trimegah Securities
The main advantage of trading using opposite Adira Dinamika and Trimegah Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adira Dinamika position performs unexpectedly, Trimegah Securities 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 Trimegah Securities will offset losses from the drop in Trimegah Securities' long position.| Adira Dinamika vs. BFI Finance Indonesia | Adira Dinamika vs. Clipan Finance Indonesia | Adira Dinamika vs. Astra Otoparts Tbk | Adira Dinamika vs. Bank Danamon Indonesia |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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