Correlation Between Austindo Nusantara and Triputra Agro
Can any of the company-specific risk be diversified away by investing in both Austindo Nusantara 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 Austindo Nusantara and Triputra Agro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austindo Nusantara Jaya and Triputra Agro Persada, you can compare the effects of market volatilities on Austindo Nusantara 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 Austindo Nusantara with a short position of Triputra Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austindo Nusantara and Triputra Agro.
Diversification Opportunities for Austindo Nusantara and Triputra Agro
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austindo and Triputra is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Austindo Nusantara Jaya 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 Austindo Nusantara 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 Austindo Nusantara Jaya 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 Austindo Nusantara i.e., Austindo Nusantara and Triputra Agro go up and down completely randomly.
Pair Corralation between Austindo Nusantara and Triputra Agro
Assuming the 90 days trading horizon Austindo Nusantara Jaya is expected to generate 0.43 times more return on investment than Triputra Agro. However, Austindo Nusantara Jaya is 2.35 times less risky than Triputra Agro. It trades about -0.11 of its potential returns per unit of risk. Triputra Agro Persada is currently generating about -0.08 per unit of risk. If you would invest 75,500 in Austindo Nusantara Jaya on September 1, 2024 and sell it today you would lose (2,000) from holding Austindo Nusantara Jaya or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Austindo Nusantara Jaya vs. Triputra Agro Persada
Performance |
| Timeline |
| Austindo Nusantara Jaya |
| Triputra Agro Persada |
Austindo Nusantara and Triputra Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austindo Nusantara and Triputra Agro
The main advantage of trading using opposite Austindo Nusantara and Triputra Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austindo Nusantara 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.| Austindo Nusantara vs. Dharma Satya Nusantara | Austindo Nusantara vs. Provident Agro Tbk | Austindo Nusantara vs. Salim Ivomas Pratama | Austindo Nusantara vs. Jaya Agra Wattie |
| Triputra Agro vs. Habco Trans Maritima | Triputra Agro vs. PT Cilacap Samudera | Triputra Agro vs. PT Sari Kreasi | Triputra Agro vs. Autopedia Sukses Lestari |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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