Correlation Between Capital Income and Tower Bersama
Can any of the company-specific risk be diversified away by investing in both Capital Income and Tower Bersama 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 Capital Income and Tower Bersama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Income Builder and Tower Bersama Infrastructure, you can compare the effects of market volatilities on Capital Income and Tower Bersama 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 Capital Income with a short position of Tower Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Income and Tower Bersama.
Diversification Opportunities for Capital Income and Tower Bersama
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and Tower is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder and Tower Bersama Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Bersama Infras and Capital Income 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 Capital Income Builder are associated (or correlated) with Tower Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Bersama Infras has no effect on the direction of Capital Income i.e., Capital Income and Tower Bersama go up and down completely randomly.
Pair Corralation between Capital Income and Tower Bersama
Assuming the 90 days horizon Capital Income is expected to generate 3.74 times less return on investment than Tower Bersama. But when comparing it to its historical volatility, Capital Income Builder is 2.37 times less risky than Tower Bersama. It trades about 0.04 of its potential returns per unit of risk. Tower Bersama Infrastructure is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 189,545 in Tower Bersama Infrastructure on October 22, 2024 and sell it today you would earn a total of 17,455 from holding Tower Bersama Infrastructure or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Capital Income Builder vs. Tower Bersama Infrastructure
Performance |
| Timeline |
| Capital Income Builder |
| Tower Bersama Infras |
Capital Income and Tower Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Income and Tower Bersama
The main advantage of trading using opposite Capital Income and Tower Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Income position performs unexpectedly, Tower Bersama 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 Tower Bersama will offset losses from the drop in Tower Bersama's long position.| Capital Income vs. Alternative Asset Allocation | Capital Income vs. Tax Managed Mid Small | Capital Income vs. Victory Incore Fund | Capital Income vs. Lord Abbett Diversified |
| Tower Bersama vs. PT Sarana Menara | Tower Bersama vs. XL Axiata Tbk | Tower Bersama vs. Merdeka Copper Gold | Tower Bersama vs. Surya Citra Media |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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