Correlation Between Austindo Nusantara and Trisula International
Can any of the company-specific risk be diversified away by investing in both Austindo Nusantara and Trisula International 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 Trisula International 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 Trisula International Tbk, you can compare the effects of market volatilities on Austindo Nusantara and Trisula International 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 Trisula International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austindo Nusantara and Trisula International.
Diversification Opportunities for Austindo Nusantara and Trisula International
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Austindo and Trisula is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Austindo Nusantara Jaya and Trisula International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisula International Tbk 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 Trisula International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisula International Tbk has no effect on the direction of Austindo Nusantara i.e., Austindo Nusantara and Trisula International go up and down completely randomly.
Pair Corralation between Austindo Nusantara and Trisula International
Assuming the 90 days trading horizon Austindo Nusantara Jaya is expected to generate 1.18 times more return on investment than Trisula International. However, Austindo Nusantara is 1.18 times more volatile than Trisula International Tbk. It trades about 0.01 of its potential returns per unit of risk. Trisula International Tbk is currently generating about -0.17 per unit of risk. If you would invest 73,000 in Austindo Nusantara Jaya on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Austindo Nusantara Jaya or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austindo Nusantara Jaya vs. Trisula International Tbk
Performance |
| Timeline |
| Austindo Nusantara Jaya |
| Trisula International Tbk |
Austindo Nusantara and Trisula International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austindo Nusantara and Trisula International
The main advantage of trading using opposite Austindo Nusantara and Trisula International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austindo Nusantara position performs unexpectedly, Trisula International 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 Trisula International will offset losses from the drop in Trisula International's long position.| Austindo Nusantara vs. Bakrieland Development Tbk | Austindo Nusantara vs. Bakrie Brothers Tbk | Austindo Nusantara vs. Energi Mega Persada | Austindo Nusantara vs. Sampoerna Agro Tbk |
| Trisula International vs. PT Buana Artha | Trisula International vs. Tifico Fiber Indonesia | Trisula International vs. Voksel Electric Tbk | Trisula International vs. Sunson Textile Manufacturer |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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