Correlation Between Pacific Strategic and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both Pacific Strategic 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 Pacific Strategic and Trimegah Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Strategic Financial and Trimegah Karya Pratama, you can compare the effects of market volatilities on Pacific Strategic 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 Pacific Strategic with a short position of Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Strategic and Trimegah Karya.
Diversification Opportunities for Pacific Strategic and Trimegah Karya
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pacific and Trimegah is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Strategic Financial 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 Pacific Strategic 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 Pacific Strategic Financial 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 Pacific Strategic i.e., Pacific Strategic and Trimegah Karya go up and down completely randomly.
Pair Corralation between Pacific Strategic and Trimegah Karya
Assuming the 90 days trading horizon Pacific Strategic Financial is expected to generate 0.34 times more return on investment than Trimegah Karya. However, Pacific Strategic Financial is 2.9 times less risky than Trimegah Karya. It trades about 0.01 of its potential returns per unit of risk. Trimegah Karya Pratama is currently generating about -0.03 per unit of risk. If you would invest 123,000 in Pacific Strategic Financial on November 28, 2024 and sell it today you would earn a total of 500.00 from holding Pacific Strategic Financial or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Strategic Financial vs. Trimegah Karya Pratama
Performance |
| Timeline |
| Pacific Strategic |
| Trimegah Karya Pratama |
Pacific Strategic and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Strategic and Trimegah Karya
The main advantage of trading using opposite Pacific Strategic and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Strategic 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.| Pacific Strategic vs. Asuransi Harta Aman | Pacific Strategic vs. Asuransi Bintang Tbk | Pacific Strategic vs. Mnc Kapital Indonesia | Pacific Strategic vs. Arthavest Tbk |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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