Correlation Between Ashmore Asset and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both Ashmore Asset and Trimegah Karya 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 Ashmore Asset and Trimegah Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashmore Asset Management and Trimegah Karya Pratama, you can compare the effects of market volatilities on Ashmore Asset and Trimegah Karya 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 Ashmore Asset with a short position of Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Asset and Trimegah Karya.
Diversification Opportunities for Ashmore Asset and Trimegah Karya
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ashmore and Trimegah is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Asset Management and Trimegah Karya Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Karya Pratama and Ashmore Asset 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 Ashmore Asset Management are associated (or correlated) with Trimegah Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Karya Pratama has no effect on the direction of Ashmore Asset i.e., Ashmore Asset and Trimegah Karya go up and down completely randomly.
Pair Corralation between Ashmore Asset and Trimegah Karya
Assuming the 90 days trading horizon Ashmore Asset Management is expected to under-perform the Trimegah Karya. In addition to that, Ashmore Asset is 1.06 times more volatile than Trimegah Karya Pratama. It trades about -0.29 of its total potential returns per unit of risk. Trimegah Karya Pratama is currently generating about -0.14 per unit of volatility. If you would invest 7,000 in Trimegah Karya Pratama on September 2, 2024 and sell it today you would lose (400.00) from holding Trimegah Karya Pratama or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Asset Management vs. Trimegah Karya Pratama
Performance |
| Timeline |
| Ashmore Asset Management |
| Trimegah Karya Pratama |
Ashmore Asset and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Asset and Trimegah Karya
The main advantage of trading using opposite Ashmore Asset and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Asset position performs unexpectedly, Trimegah Karya 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 Karya will offset losses from the drop in Trimegah Karya's long position.| Ashmore Asset vs. Bank Amar Indonesia | Ashmore Asset vs. Bank Mestika Dharma | Ashmore Asset vs. Integra Indocabinet Tbk | Ashmore Asset vs. Multistrada Arah Sarana |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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