Correlation Between Trisula Textile and Surya Permata
Can any of the company-specific risk be diversified away by investing in both Trisula Textile and Surya Permata 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 Surya Permata 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 Surya Permata Andalan, you can compare the effects of market volatilities on Trisula Textile and Surya Permata 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 Surya Permata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trisula Textile and Surya Permata.
Diversification Opportunities for Trisula Textile and Surya Permata
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trisula and Surya is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Trisula Textile Industries and Surya Permata Andalan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Permata Andalan 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 Surya Permata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Permata Andalan has no effect on the direction of Trisula Textile i.e., Trisula Textile and Surya Permata go up and down completely randomly.
Pair Corralation between Trisula Textile and Surya Permata
Assuming the 90 days trading horizon Trisula Textile Industries is expected to under-perform the Surya Permata. In addition to that, Trisula Textile is 1.23 times more volatile than Surya Permata Andalan. It trades about -0.32 of its total potential returns per unit of risk. Surya Permata Andalan is currently generating about -0.17 per unit of volatility. If you would invest 14,800 in Surya Permata Andalan on August 25, 2024 and sell it today you would lose (1,000.00) from holding Surya Permata Andalan or give up 6.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Trisula Textile Industries vs. Surya Permata Andalan
Performance |
| Timeline |
| Trisula Textile Indu |
| Surya Permata Andalan |
Trisula Textile and Surya Permata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trisula Textile and Surya Permata
The main advantage of trading using opposite Trisula Textile and Surya Permata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trisula Textile position performs unexpectedly, Surya Permata 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 Surya Permata will offset losses from the drop in Surya Permata'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 |
| Surya Permata vs. Hotel Fitra International | Surya Permata vs. Jasa Armada Indonesia | Surya Permata vs. Cahayaputra Asa Keramik | Surya Permata vs. Campina Ice Cream |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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