Correlation Between Cita Mineral and Trinitan Metals
Can any of the company-specific risk be diversified away by investing in both Cita Mineral and Trinitan Metals 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 Cita Mineral and Trinitan Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cita Mineral Investindo and Trinitan Metals and, you can compare the effects of market volatilities on Cita Mineral and Trinitan Metals 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 Cita Mineral with a short position of Trinitan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cita Mineral and Trinitan Metals.
Diversification Opportunities for Cita Mineral and Trinitan Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cita and Trinitan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cita Mineral Investindo and Trinitan Metals and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinitan Metals and Cita Mineral 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 Cita Mineral Investindo are associated (or correlated) with Trinitan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinitan Metals has no effect on the direction of Cita Mineral i.e., Cita Mineral and Trinitan Metals go up and down completely randomly.
Pair Corralation between Cita Mineral and Trinitan Metals
If you would invest 275,000 in Cita Mineral Investindo on August 30, 2024 and sell it today you would earn a total of 83,000 from holding Cita Mineral Investindo or generate 30.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cita Mineral Investindo vs. Trinitan Metals and
Performance |
| Timeline |
| Cita Mineral Investindo |
| Trinitan Metals |
Cita Mineral and Trinitan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cita Mineral and Trinitan Metals
The main advantage of trading using opposite Cita Mineral and Trinitan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cita Mineral position performs unexpectedly, Trinitan Metals 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 Trinitan Metals will offset losses from the drop in Trinitan Metals' long position.| Cita Mineral vs. Citatah Tbk | Cita Mineral vs. Indo Kordsa Tbk | Cita Mineral vs. Central Omega Resources | Cita Mineral vs. Betonjaya Manunggal Tbk |
| Trinitan Metals vs. Merdeka Copper Gold | Trinitan Metals vs. Aneka Tambang Persero | Trinitan Metals vs. Bumi Resources Minerals | Trinitan Metals vs. Cita Mineral Investindo |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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