Correlation Between Inocycle Technology and Trimegah Securities
Can any of the company-specific risk be diversified away by investing in both Inocycle Technology 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 Inocycle Technology and Trimegah Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inocycle Technology Tbk and Trimegah Securities Tbk, you can compare the effects of market volatilities on Inocycle Technology 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 Inocycle Technology with a short position of Trimegah Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inocycle Technology and Trimegah Securities.
Diversification Opportunities for Inocycle Technology and Trimegah Securities
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inocycle and Trimegah is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Inocycle Technology 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 Inocycle Technology 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 Inocycle Technology 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 Inocycle Technology i.e., Inocycle Technology and Trimegah Securities go up and down completely randomly.
Pair Corralation between Inocycle Technology and Trimegah Securities
Assuming the 90 days trading horizon Inocycle Technology Tbk is expected to under-perform the Trimegah Securities. But the stock apears to be less risky and, when comparing its historical volatility, Inocycle Technology Tbk is 1.98 times less risky than Trimegah Securities. The stock trades about -0.21 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inocycle Technology Tbk vs. Trimegah Securities Tbk
Performance |
| Timeline |
| Inocycle Technology Tbk |
| Trimegah Securities Tbk |
Inocycle Technology and Trimegah Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inocycle Technology and Trimegah Securities
The main advantage of trading using opposite Inocycle Technology and Trimegah Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inocycle Technology 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.| Inocycle Technology vs. MNC Vision Networks | Inocycle Technology vs. Hartadinata Abadi Tbk | Inocycle Technology vs. Kencana Energi Lestari | Inocycle Technology vs. Bali Bintang Sejahtera |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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