Correlation Between Trisula Textile and Bintang Oto
Can any of the company-specific risk be diversified away by investing in both Trisula Textile and Bintang Oto 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 Trisula Textile and Bintang Oto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trisula Textile Industries and Bintang Oto Global, you can compare the effects of market volatilities on Trisula Textile and Bintang Oto 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 Trisula Textile with a short position of Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trisula Textile and Bintang Oto.
Diversification Opportunities for Trisula Textile and Bintang Oto
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Trisula and Bintang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Trisula Textile Industries and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global and Trisula Textile 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 Trisula Textile Industries are associated (or correlated) with Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of Trisula Textile i.e., Trisula Textile and Bintang Oto go up and down completely randomly.
Pair Corralation between Trisula Textile and Bintang Oto
Assuming the 90 days trading horizon Trisula Textile Industries is expected to under-perform the Bintang Oto. But the stock apears to be less risky and, when comparing its historical volatility, Trisula Textile Industries is 1.4 times less risky than Bintang Oto. The stock trades about -0.11 of its potential returns per unit of risk. The Bintang Oto Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 55,000 in Bintang Oto Global on November 3, 2024 and sell it today you would earn a total of 3,500 from holding Bintang Oto Global or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trisula Textile Industries vs. Bintang Oto Global
Performance |
| Timeline |
| Trisula Textile Indu |
| Bintang Oto Global |
Trisula Textile and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trisula Textile and Bintang Oto
The main advantage of trading using opposite Trisula Textile and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trisula Textile position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto's long position.| Trisula Textile vs. Bintang Oto Global | Trisula Textile vs. Trisula International Tbk | Trisula Textile vs. Bali Towerindo Sentra | Trisula Textile vs. Garuda Metalindo 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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