Correlation Between Smartfren Telecom and Trada Maritime
Can any of the company-specific risk be diversified away by investing in both Smartfren Telecom and Trada Maritime 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 Smartfren Telecom and Trada Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smartfren Telecom Tbk and Trada Maritime Tbk, you can compare the effects of market volatilities on Smartfren Telecom and Trada Maritime 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 Smartfren Telecom with a short position of Trada Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smartfren Telecom and Trada Maritime.
Diversification Opportunities for Smartfren Telecom and Trada Maritime
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Smartfren and Trada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Smartfren Telecom Tbk and Trada Maritime Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trada Maritime Tbk and Smartfren Telecom 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 Smartfren Telecom Tbk are associated (or correlated) with Trada Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trada Maritime Tbk has no effect on the direction of Smartfren Telecom i.e., Smartfren Telecom and Trada Maritime go up and down completely randomly.
Pair Corralation between Smartfren Telecom and Trada Maritime
If you would invest 5,000 in Trada Maritime Tbk on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Trada Maritime Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smartfren Telecom Tbk vs. Trada Maritime Tbk
Performance |
| Timeline |
| Smartfren Telecom Tbk |
| Trada Maritime Tbk |
Smartfren Telecom and Trada Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smartfren Telecom and Trada Maritime
The main advantage of trading using opposite Smartfren Telecom and Trada Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smartfren Telecom position performs unexpectedly, Trada Maritime 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 Trada Maritime will offset losses from the drop in Trada Maritime's long position.| Smartfren Telecom vs. Mnc Land Tbk | Smartfren Telecom vs. MNC Vision Networks | Smartfren Telecom vs. MD Pictures Tbk | Smartfren Telecom vs. Link Net Tbk |
| Trada Maritime vs. Prima Alloy Steel | Trada Maritime vs. Smartfren Telecom Tbk | Trada Maritime vs. Ashmore Asset Management | Trada Maritime vs. PT UBC Medical |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |