Correlation Between Trimitra Propertindo and MAP Aktif
Can any of the company-specific risk be diversified away by investing in both Trimitra Propertindo and MAP Aktif 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 Trimitra Propertindo and MAP Aktif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimitra Propertindo Tbk and MAP Aktif Adiperkasa, you can compare the effects of market volatilities on Trimitra Propertindo and MAP Aktif 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 Trimitra Propertindo with a short position of MAP Aktif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimitra Propertindo and MAP Aktif.
Diversification Opportunities for Trimitra Propertindo and MAP Aktif
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trimitra and MAP is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Trimitra Propertindo Tbk and MAP Aktif Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAP Aktif Adiperkasa and Trimitra Propertindo 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 Trimitra Propertindo Tbk are associated (or correlated) with MAP Aktif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAP Aktif Adiperkasa has no effect on the direction of Trimitra Propertindo i.e., Trimitra Propertindo and MAP Aktif go up and down completely randomly.
Pair Corralation between Trimitra Propertindo and MAP Aktif
Assuming the 90 days trading horizon Trimitra Propertindo Tbk is expected to generate 1.23 times more return on investment than MAP Aktif. However, Trimitra Propertindo is 1.23 times more volatile than MAP Aktif Adiperkasa. It trades about -0.08 of its potential returns per unit of risk. MAP Aktif Adiperkasa is currently generating about -0.37 per unit of risk. If you would invest 1,600 in Trimitra Propertindo Tbk on November 28, 2024 and sell it today you would lose (100.00) from holding Trimitra Propertindo Tbk or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trimitra Propertindo Tbk vs. MAP Aktif Adiperkasa
Performance |
| Timeline |
| Trimitra Propertindo Tbk |
| MAP Aktif Adiperkasa |
Trimitra Propertindo and MAP Aktif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimitra Propertindo and MAP Aktif
The main advantage of trading using opposite Trimitra Propertindo and MAP Aktif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimitra Propertindo position performs unexpectedly, MAP Aktif 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 MAP Aktif will offset losses from the drop in MAP Aktif's long position.| Trimitra Propertindo vs. Jaya Sukses Makmur | Trimitra Propertindo vs. Mahkota Group Tbk | Trimitra Propertindo vs. Pollux Properti Indonesia | Trimitra Propertindo vs. Kioson Komersial Indonesia |
| MAP Aktif vs. Mitra Adiperkasa Tbk | MAP Aktif vs. Map Boga Adiperkasa | MAP Aktif vs. Mitra Keluarga Karyasehat | MAP Aktif vs. Medikaloka Hermina PT |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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