Correlation Between Erajaya Swasembada and Tower Bersama
Can any of the company-specific risk be diversified away by investing in both Erajaya Swasembada 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 Erajaya Swasembada and Tower Bersama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erajaya Swasembada Tbk and Tower Bersama Infrastructure, you can compare the effects of market volatilities on Erajaya Swasembada 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 Erajaya Swasembada with a short position of Tower Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erajaya Swasembada and Tower Bersama.
Diversification Opportunities for Erajaya Swasembada and Tower Bersama
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Erajaya and Tower is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Erajaya Swasembada Tbk 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 Erajaya Swasembada 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 Erajaya Swasembada Tbk 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 Erajaya Swasembada i.e., Erajaya Swasembada and Tower Bersama go up and down completely randomly.
Pair Corralation between Erajaya Swasembada and Tower Bersama
Assuming the 90 days trading horizon Erajaya Swasembada Tbk is expected to under-perform the Tower Bersama. In addition to that, Erajaya Swasembada is 1.64 times more volatile than Tower Bersama Infrastructure. It trades about -0.07 of its total potential returns per unit of risk. Tower Bersama Infrastructure is currently generating about 0.13 per unit of volatility. If you would invest 188,000 in Tower Bersama Infrastructure on August 29, 2024 and sell it today you would earn a total of 7,000 from holding Tower Bersama Infrastructure or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erajaya Swasembada Tbk vs. Tower Bersama Infrastructure
Performance |
| Timeline |
| Erajaya Swasembada Tbk |
| Tower Bersama Infras |
Erajaya Swasembada and Tower Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erajaya Swasembada and Tower Bersama
The main advantage of trading using opposite Erajaya Swasembada and Tower Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erajaya Swasembada 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.| Erajaya Swasembada vs. M Cash Integrasi | Erajaya Swasembada vs. NFC Indonesia PT | Erajaya Swasembada vs. Multipolar Technology Tbk | Erajaya Swasembada vs. Digital Mediatama Maxima |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |