Correlation Between Karya Bersama and Terregra Asia
Can any of the company-specific risk be diversified away by investing in both Karya Bersama and Terregra Asia 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 Karya Bersama and Terregra Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karya Bersama Anugerah and Terregra Asia Energy, you can compare the effects of market volatilities on Karya Bersama and Terregra Asia 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 Karya Bersama with a short position of Terregra Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karya Bersama and Terregra Asia.
Diversification Opportunities for Karya Bersama and Terregra Asia
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Karya and Terregra is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Karya Bersama Anugerah and Terregra Asia Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terregra Asia Energy and Karya Bersama 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 Karya Bersama Anugerah are associated (or correlated) with Terregra Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terregra Asia Energy has no effect on the direction of Karya Bersama i.e., Karya Bersama and Terregra Asia go up and down completely randomly.
Pair Corralation between Karya Bersama and Terregra Asia
Assuming the 90 days trading horizon Karya Bersama Anugerah is expected to generate 0.99 times more return on investment than Terregra Asia. However, Karya Bersama Anugerah is 1.01 times less risky than Terregra Asia. It trades about -0.02 of its potential returns per unit of risk. Terregra Asia Energy is currently generating about -0.13 per unit of risk. If you would invest 2,100 in Karya Bersama Anugerah on September 12, 2024 and sell it today you would lose (200.00) from holding Karya Bersama Anugerah or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karya Bersama Anugerah vs. Terregra Asia Energy
Performance |
| Timeline |
| Karya Bersama Anugerah |
| Terregra Asia Energy |
Karya Bersama and Terregra Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karya Bersama and Terregra Asia
The main advantage of trading using opposite Karya Bersama and Terregra Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karya Bersama position performs unexpectedly, Terregra Asia 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 Terregra Asia will offset losses from the drop in Terregra Asia's long position.| Karya Bersama vs. Royalindo Investa Wijaya | Karya Bersama vs. Mitrabara Adiperdana PT | Karya Bersama vs. PT Multi Garam | Karya Bersama vs. Bank Ina Perdana |
| Terregra Asia vs. Kapuas Prima Coal | Terregra Asia vs. Cikarang Listrindo Tbk | Terregra Asia vs. PP Presisi Tbk | Terregra Asia vs. Alfa Energi Investama |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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