Correlation Between Sepeda Bersama and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both Sepeda Bersama and Trimegah Karya 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 Sepeda Bersama and Trimegah Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sepeda Bersama Indonesia and Trimegah Karya Pratama, you can compare the effects of market volatilities on Sepeda Bersama and Trimegah Karya 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 Sepeda Bersama with a short position of Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sepeda Bersama and Trimegah Karya.
Diversification Opportunities for Sepeda Bersama and Trimegah Karya
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sepeda and Trimegah is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sepeda Bersama Indonesia and Trimegah Karya Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Karya Pratama and Sepeda Bersama 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 Sepeda Bersama Indonesia are associated (or correlated) with Trimegah Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Karya Pratama has no effect on the direction of Sepeda Bersama i.e., Sepeda Bersama and Trimegah Karya go up and down completely randomly.
Pair Corralation between Sepeda Bersama and Trimegah Karya
Assuming the 90 days trading horizon Sepeda Bersama Indonesia is expected to generate 0.73 times more return on investment than Trimegah Karya. However, Sepeda Bersama Indonesia is 1.37 times less risky than Trimegah Karya. It trades about -0.18 of its potential returns per unit of risk. Trimegah Karya Pratama is currently generating about -0.17 per unit of risk. If you would invest 55,500 in Sepeda Bersama Indonesia on August 30, 2024 and sell it today you would lose (3,000) from holding Sepeda Bersama Indonesia or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sepeda Bersama Indonesia vs. Trimegah Karya Pratama
Performance |
| Timeline |
| Sepeda Bersama Indonesia |
| Trimegah Karya Pratama |
Sepeda Bersama and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sepeda Bersama and Trimegah Karya
The main advantage of trading using opposite Sepeda Bersama and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sepeda Bersama position performs unexpectedly, Trimegah Karya 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 Trimegah Karya will offset losses from the drop in Trimegah Karya's long position.| Sepeda Bersama vs. Autopedia Sukses Lestari | Sepeda Bersama vs. Champ Resto Indonesia | Sepeda Bersama vs. Adhi Commuter Properti | Sepeda Bersama vs. GTS Internasional Tbk |
| Trimegah Karya vs. Dyandra Media International | Trimegah Karya vs. Global Mediacom Tbk | Trimegah Karya vs. Sentra Food Indonesia | Trimegah Karya vs. Visi Media Asia |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |