Correlation Between Nanotech Indonesia and PT Data
Can any of the company-specific risk be diversified away by investing in both Nanotech Indonesia and PT Data 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 Nanotech Indonesia and PT Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanotech Indonesia Global and PT Data Sinergitama, you can compare the effects of market volatilities on Nanotech Indonesia and PT Data 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 Nanotech Indonesia with a short position of PT Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanotech Indonesia and PT Data.
Diversification Opportunities for Nanotech Indonesia and PT Data
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nanotech and ELIT is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nanotech Indonesia Global and PT Data Sinergitama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Data Sinergitama and Nanotech Indonesia 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 Nanotech Indonesia Global are associated (or correlated) with PT Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Data Sinergitama has no effect on the direction of Nanotech Indonesia i.e., Nanotech Indonesia and PT Data go up and down completely randomly.
Pair Corralation between Nanotech Indonesia and PT Data
Assuming the 90 days trading horizon Nanotech Indonesia Global is expected to generate 1.07 times more return on investment than PT Data. However, Nanotech Indonesia is 1.07 times more volatile than PT Data Sinergitama. It trades about 0.16 of its potential returns per unit of risk. PT Data Sinergitama is currently generating about -0.26 per unit of risk. If you would invest 1,800 in Nanotech Indonesia Global on August 26, 2024 and sell it today you would earn a total of 200.00 from holding Nanotech Indonesia Global or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanotech Indonesia Global vs. PT Data Sinergitama
Performance |
| Timeline |
| Nanotech Indonesia Global |
| PT Data Sinergitama |
Nanotech Indonesia and PT Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanotech Indonesia and PT Data
The main advantage of trading using opposite Nanotech Indonesia and PT Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanotech Indonesia position performs unexpectedly, PT Data 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 PT Data will offset losses from the drop in PT Data's long position.| Nanotech Indonesia vs. Sumber Tani Agung | Nanotech Indonesia vs. Dayamitra Telekomunikasi PT | Nanotech Indonesia vs. Wir Asia Tbk | Nanotech Indonesia vs. Semacom Integrated Tbk |
| PT Data vs. Tridomain Performance Materials | PT Data vs. Fast Food Indonesia | PT Data vs. Metrodata Electronics Tbk | PT Data vs. Communication Cable Systems |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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