Correlation Between Tera Data and PT Data
Can any of the company-specific risk be diversified away by investing in both Tera Data and PT Data 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 Tera Data and PT Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tera Data Indonusa and PT Data Sinergitama, you can compare the effects of market volatilities on Tera Data and PT Data 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 Tera Data with a short position of PT Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tera Data and PT Data.
Diversification Opportunities for Tera Data and PT Data
Very good diversification
The 3 months correlation between Tera and ELIT is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tera Data Indonusa and PT Data Sinergitama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Data Sinergitama and Tera Data 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 Tera Data Indonusa are associated (or correlated) with PT Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Data Sinergitama has no effect on the direction of Tera Data i.e., Tera Data and PT Data go up and down completely randomly.
Pair Corralation between Tera Data and PT Data
Assuming the 90 days trading horizon Tera Data Indonusa is expected to under-perform the PT Data. But the stock apears to be less risky and, when comparing its historical volatility, Tera Data Indonusa is 1.45 times less risky than PT Data. The stock trades about -0.13 of its potential returns per unit of risk. The PT Data Sinergitama is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,877 in PT Data Sinergitama on September 3, 2024 and sell it today you would earn a total of 2,323 from holding PT Data Sinergitama or generate 26.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tera Data Indonusa vs. PT Data Sinergitama
Performance |
| Timeline |
| Tera Data Indonusa |
| PT Data Sinergitama |
Tera Data and PT Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tera Data and PT Data
The main advantage of trading using opposite Tera Data and PT Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tera Data position performs unexpectedly, PT Data 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 PT Data will offset losses from the drop in PT Data's long position.| Tera Data vs. PT Dewi Shri | Tera Data vs. Autopedia Sukses Lestari | Tera Data vs. Mitra Pinasthika Mustika | Tera Data vs. Jakarta Int Hotels |
| PT Data vs. Indointernet Tbk PT | PT Data vs. Multipolar Technology Tbk | PT Data vs. Indosterling Technomedia Tbk | PT Data vs. PT Techno9 Indonesia |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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