Correlation Between Trisula Textile and Impack Pratama
Can any of the company-specific risk be diversified away by investing in both Trisula Textile and Impack Pratama 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 Impack Pratama 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 Impack Pratama Industri, you can compare the effects of market volatilities on Trisula Textile and Impack Pratama 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 Impack Pratama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trisula Textile and Impack Pratama.
Diversification Opportunities for Trisula Textile and Impack Pratama
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trisula and Impack is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Trisula Textile Industries and Impack Pratama Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impack Pratama Industri 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 Impack Pratama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impack Pratama Industri has no effect on the direction of Trisula Textile i.e., Trisula Textile and Impack Pratama go up and down completely randomly.
Pair Corralation between Trisula Textile and Impack Pratama
Assuming the 90 days trading horizon Trisula Textile Industries is expected to under-perform the Impack Pratama. In addition to that, Trisula Textile is 1.65 times more volatile than Impack Pratama Industri. It trades about -0.32 of its total potential returns per unit of risk. Impack Pratama Industri is currently generating about 0.03 per unit of volatility. If you would invest 33,800 in Impack Pratama Industri on August 25, 2024 and sell it today you would earn a total of 200.00 from holding Impack Pratama Industri or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trisula Textile Industries vs. Impack Pratama Industri
Performance |
| Timeline |
| Trisula Textile Indu |
| Impack Pratama Industri |
Trisula Textile and Impack Pratama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trisula Textile and Impack Pratama
The main advantage of trading using opposite Trisula Textile and Impack Pratama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trisula Textile position performs unexpectedly, Impack Pratama 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 Impack Pratama will offset losses from the drop in Impack Pratama'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 |
| Impack Pratama vs. Kedaung Indah Can | Impack Pratama vs. Langgeng Makmur Industri | Impack Pratama vs. Kabelindo Murni Tbk | Impack Pratama vs. Mustika Ratu Tbk |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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