Correlation Between Tera Data and First Media
Can any of the company-specific risk be diversified away by investing in both Tera Data and First Media 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 First Media 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 First Media Tbk, you can compare the effects of market volatilities on Tera Data and First Media 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 First Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tera Data and First Media.
Diversification Opportunities for Tera Data and First Media
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tera and First is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Tera Data Indonusa and First Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Media Tbk 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 First Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Media Tbk has no effect on the direction of Tera Data i.e., Tera Data and First Media go up and down completely randomly.
Pair Corralation between Tera Data and First Media
Assuming the 90 days trading horizon Tera Data Indonusa is expected to under-perform the First Media. In addition to that, Tera Data is 1.02 times more volatile than First Media Tbk. It trades about 0.0 of its total potential returns per unit of risk. First Media Tbk is currently generating about 0.03 per unit of volatility. If you would invest 7,200 in First Media Tbk on November 28, 2024 and sell it today you would earn a total of 1,400 from holding First Media Tbk or generate 19.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tera Data Indonusa vs. First Media Tbk
Performance |
| Timeline |
| Tera Data Indonusa |
| First Media Tbk |
Tera Data and First Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tera Data and First Media
The main advantage of trading using opposite Tera Data and First Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tera Data position performs unexpectedly, First Media 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 First Media will offset losses from the drop in First Media's long position.| Tera Data vs. PT Dewi Shri | Tera Data vs. PT Arkora Hydro | Tera Data vs. Habco Trans Maritima | Tera Data vs. PT Jhonlin Agro |
| First Media vs. FKS Food Sejahtera | First Media vs. PT Homeco Victoria | First Media vs. Metro Healthcare Indonesia | First Media vs. Humpuss Intermoda Transportasi |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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