Correlation Between Tera Data and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both Tera Data 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 Tera Data and Trimegah Karya 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 Trimegah Karya Pratama, you can compare the effects of market volatilities on Tera Data 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 Tera Data with a short position of Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tera Data and Trimegah Karya.
Diversification Opportunities for Tera Data and Trimegah Karya
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tera and Trimegah is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tera Data Indonusa 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 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 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 Tera Data i.e., Tera Data and Trimegah Karya go up and down completely randomly.
Pair Corralation between Tera Data and Trimegah Karya
Assuming the 90 days trading horizon Tera Data Indonusa is expected to generate 0.9 times more return on investment than Trimegah Karya. However, Tera Data Indonusa is 1.12 times less risky than Trimegah Karya. It trades about 0.12 of its potential returns per unit of risk. Trimegah Karya Pratama is currently generating about -0.14 per unit of risk. If you would invest 11,716 in Tera Data Indonusa on September 2, 2024 and sell it today you would earn a total of 484.00 from holding Tera Data Indonusa or generate 4.13% 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. Trimegah Karya Pratama
Performance |
| Timeline |
| Tera Data Indonusa |
| Trimegah Karya Pratama |
Tera Data and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tera Data and Trimegah Karya
The main advantage of trading using opposite Tera Data and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tera Data 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.| Tera Data vs. PT Dewi Shri | Tera Data vs. Habco Trans Maritima | Tera Data vs. PT Jhonlin Agro | Tera Data vs. Autopedia Sukses Lestari |
| Trimegah Karya vs. Yelooo Integra Datanet | Trimegah Karya vs. Garuda Metalindo Tbk | Trimegah Karya vs. Tera Data Indonusa | Trimegah Karya vs. Pacific Strategic Financial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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