Correlation Between Bali Towerindo and Trisula International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bali Towerindo 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 Bali Towerindo and Trisula International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bali Towerindo Sentra and Trisula International Tbk, you can compare the effects of market volatilities on Bali Towerindo 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 Bali Towerindo with a short position of Trisula International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bali Towerindo and Trisula International.

Diversification Opportunities for Bali Towerindo and Trisula International

BaliTrisulaDiversified AwayBaliTrisulaDiversified Away100%
0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between Bali and Trisula is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bali Towerindo Sentra 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 Bali Towerindo 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 Bali Towerindo Sentra 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 Bali Towerindo i.e., Bali Towerindo and Trisula International go up and down completely randomly.

Pair Corralation between Bali Towerindo and Trisula International

Assuming the 90 days trading horizon Bali Towerindo Sentra is expected to under-perform the Trisula International. In addition to that, Bali Towerindo is 3.11 times more volatile than Trisula International Tbk. It trades about -0.14 of its total potential returns per unit of risk. Trisula International Tbk is currently generating about -0.11 per unit of volatility. If you would invest  16,500  in Trisula International Tbk on December 3, 2024 and sell it today you would lose (500.00) from holding Trisula International Tbk or give up 3.03% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bali Towerindo Sentra  vs.  Trisula International Tbk

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015202530
JavaScript chart by amCharts 3.21.15BALI TRIS
       Timeline  
Bali Towerindo Sentra 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days Bali Towerindo Sentra has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Bali Towerindo is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFebMar1,2001,3001,4001,5001,6001,7001,800
Trisula International Tbk 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Trisula International Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Trisula International is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFebMar160165170175180185

Bali Towerindo and Trisula International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-15.39-11.52-7.66-3.80.03.837.7211.6115.5 0.050.100.15
JavaScript chart by amCharts 3.21.15BALI TRIS
       Returns  

Pair Trading with Bali Towerindo and Trisula International

The main advantage of trading using opposite Bali Towerindo and Trisula International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bali Towerindo 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.
The idea behind Bali Towerindo Sentra and Trisula International Tbk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity