Correlation Between Aneka Gas and Triputra Agro
Can any of the company-specific risk be diversified away by investing in both Aneka Gas and Triputra Agro 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 Aneka Gas and Triputra Agro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Gas Industri and Triputra Agro Persada, you can compare the effects of market volatilities on Aneka Gas and Triputra Agro 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 Aneka Gas with a short position of Triputra Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Gas and Triputra Agro.
Diversification Opportunities for Aneka Gas and Triputra Agro
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aneka and Triputra is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Gas Industri and Triputra Agro Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triputra Agro Persada and Aneka Gas 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 Aneka Gas Industri are associated (or correlated) with Triputra Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triputra Agro Persada has no effect on the direction of Aneka Gas i.e., Aneka Gas and Triputra Agro go up and down completely randomly.
Pair Corralation between Aneka Gas and Triputra Agro
Assuming the 90 days trading horizon Aneka Gas Industri is expected to generate 0.37 times more return on investment than Triputra Agro. However, Aneka Gas Industri is 2.68 times less risky than Triputra Agro. It trades about -0.24 of its potential returns per unit of risk. Triputra Agro Persada is currently generating about -0.09 per unit of risk. If you would invest 172,000 in Aneka Gas Industri on August 29, 2024 and sell it today you would lose (8,500) from holding Aneka Gas Industri or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Gas Industri vs. Triputra Agro Persada
Performance |
| Timeline |
| Aneka Gas Industri |
| Triputra Agro Persada |
Aneka Gas and Triputra Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Gas and Triputra Agro
The main advantage of trading using opposite Aneka Gas and Triputra Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Gas position performs unexpectedly, Triputra Agro 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 Triputra Agro will offset losses from the drop in Triputra Agro's long position.| Aneka Gas vs. Surya Esa Perkasa | Aneka Gas vs. Elang Mahkota Teknologi | Aneka Gas vs. Merdeka Copper Gold | Aneka Gas vs. Saratoga Investama Sedaya |
| Triputra Agro vs. Dharma Satya Nusantara | Triputra Agro vs. Saratoga Investama Sedaya | Triputra Agro vs. Surya Esa Perkasa | Triputra Agro vs. Elang Mahkota Teknologi |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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