Correlation Between Clipan Finance and Tifa Finance
Can any of the company-specific risk be diversified away by investing in both Clipan Finance and Tifa Finance 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 Clipan Finance and Tifa Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clipan Finance Indonesia and Tifa Finance Tbk, you can compare the effects of market volatilities on Clipan Finance and Tifa Finance 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 Clipan Finance with a short position of Tifa Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clipan Finance and Tifa Finance.
Diversification Opportunities for Clipan Finance and Tifa Finance
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clipan and Tifa is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Clipan Finance Indonesia and Tifa Finance Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tifa Finance Tbk and Clipan Finance 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 Clipan Finance Indonesia are associated (or correlated) with Tifa Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tifa Finance Tbk has no effect on the direction of Clipan Finance i.e., Clipan Finance and Tifa Finance go up and down completely randomly.
Pair Corralation between Clipan Finance and Tifa Finance
Assuming the 90 days trading horizon Clipan Finance Indonesia is expected to under-perform the Tifa Finance. In addition to that, Clipan Finance is 6.14 times more volatile than Tifa Finance Tbk. It trades about -0.26 of its total potential returns per unit of risk. Tifa Finance Tbk is currently generating about 0.22 per unit of volatility. If you would invest 55,000 in Tifa Finance Tbk on November 29, 2024 and sell it today you would earn a total of 500.00 from holding Tifa Finance Tbk or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clipan Finance Indonesia vs. Tifa Finance Tbk
Performance |
| Timeline |
| Clipan Finance Indonesia |
| Tifa Finance Tbk |
Clipan Finance and Tifa Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clipan Finance and Tifa Finance
The main advantage of trading using opposite Clipan Finance and Tifa Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clipan Finance position performs unexpectedly, Tifa Finance 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 Tifa Finance will offset losses from the drop in Tifa Finance's long position.| Clipan Finance vs. BFI Finance Indonesia | Clipan Finance vs. Adira Dinamika Multi | Clipan Finance vs. Paninvest Tbk | Clipan Finance vs. Panin Financial Tbk |
| Tifa Finance vs. Verena Multi Finance | Tifa Finance vs. Trust Finance Indonesia | Tifa Finance vs. Radana Bhaskara Finance | Tifa Finance vs. Wahana Ottomitra Multiartha |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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