Correlation Between Hero Supermarket and Trimegah Securities
Can any of the company-specific risk be diversified away by investing in both Hero Supermarket and Trimegah Securities 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 Hero Supermarket and Trimegah Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hero Supermarket Tbk and Trimegah Securities Tbk, you can compare the effects of market volatilities on Hero Supermarket and Trimegah Securities 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 Hero Supermarket with a short position of Trimegah Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hero Supermarket and Trimegah Securities.
Diversification Opportunities for Hero Supermarket and Trimegah Securities
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hero and Trimegah is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hero Supermarket Tbk and Trimegah Securities Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Securities Tbk and Hero Supermarket 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 Hero Supermarket Tbk are associated (or correlated) with Trimegah Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Securities Tbk has no effect on the direction of Hero Supermarket i.e., Hero Supermarket and Trimegah Securities go up and down completely randomly.
Pair Corralation between Hero Supermarket and Trimegah Securities
Assuming the 90 days trading horizon Hero Supermarket Tbk is expected to under-perform the Trimegah Securities. But the stock apears to be less risky and, when comparing its historical volatility, Hero Supermarket Tbk is 1.64 times less risky than Trimegah Securities. The stock trades about -0.41 of its potential returns per unit of risk. The Trimegah Securities Tbk is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 30,000 in Trimegah Securities Tbk on September 4, 2024 and sell it today you would earn a total of 5,800 from holding Trimegah Securities Tbk or generate 19.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hero Supermarket Tbk vs. Trimegah Securities Tbk
Performance |
| Timeline |
| Hero Supermarket Tbk |
| Trimegah Securities Tbk |
Hero Supermarket and Trimegah Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hero Supermarket and Trimegah Securities
The main advantage of trading using opposite Hero Supermarket and Trimegah Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hero Supermarket position performs unexpectedly, Trimegah Securities 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 Trimegah Securities will offset losses from the drop in Trimegah Securities' long position.| Hero Supermarket vs. Fast Food Indonesia | Hero Supermarket vs. Enseval Putra Megatrading | Hero Supermarket vs. Matahari Putra Prima | Hero Supermarket vs. Hexindo Adiperkasa Tbk |
| Trimegah Securities vs. Wahana Ottomitra Multiartha | Trimegah Securities vs. Paninvest Tbk | Trimegah Securities vs. Sinar Mas Multiartha | Trimegah Securities vs. Trias Sentosa Tbk |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |