Correlation Between Trisula Textile and Pembangunan Graha
Can any of the company-specific risk be diversified away by investing in both Trisula Textile and Pembangunan Graha 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 Pembangunan Graha 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 Pembangunan Graha Lestari, you can compare the effects of market volatilities on Trisula Textile and Pembangunan Graha 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 Pembangunan Graha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trisula Textile and Pembangunan Graha.
Diversification Opportunities for Trisula Textile and Pembangunan Graha
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trisula and Pembangunan is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Trisula Textile Industries and Pembangunan Graha Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembangunan Graha Lestari 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 Pembangunan Graha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembangunan Graha Lestari has no effect on the direction of Trisula Textile i.e., Trisula Textile and Pembangunan Graha go up and down completely randomly.
Pair Corralation between Trisula Textile and Pembangunan Graha
Assuming the 90 days trading horizon Trisula Textile is expected to generate 1.98 times less return on investment than Pembangunan Graha. In addition to that, Trisula Textile is 1.01 times more volatile than Pembangunan Graha Lestari. It trades about 0.02 of its total potential returns per unit of risk. Pembangunan Graha Lestari is currently generating about 0.04 per unit of volatility. If you would invest 12,900 in Pembangunan Graha Lestari on September 20, 2024 and sell it today you would earn a total of 2,300 from holding Pembangunan Graha Lestari or generate 17.83% 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. Pembangunan Graha Lestari
Performance |
| Timeline |
| Trisula Textile Indu |
| Pembangunan Graha Lestari |
Trisula Textile and Pembangunan Graha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trisula Textile and Pembangunan Graha
The main advantage of trading using opposite Trisula Textile and Pembangunan Graha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trisula Textile position performs unexpectedly, Pembangunan Graha 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 Pembangunan Graha will offset losses from the drop in Pembangunan Graha'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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