Correlation Between PAM Mineral and Trinitan Metals
Can any of the company-specific risk be diversified away by investing in both PAM Mineral and Trinitan Metals 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 PAM Mineral and Trinitan Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PAM Mineral Tbk and Trinitan Metals and, you can compare the effects of market volatilities on PAM Mineral and Trinitan Metals 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 PAM Mineral with a short position of Trinitan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PAM Mineral and Trinitan Metals.
Diversification Opportunities for PAM Mineral and Trinitan Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PAM and Trinitan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PAM Mineral Tbk and Trinitan Metals and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinitan Metals and PAM Mineral 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 PAM Mineral Tbk are associated (or correlated) with Trinitan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinitan Metals has no effect on the direction of PAM Mineral i.e., PAM Mineral and Trinitan Metals go up and down completely randomly.
Pair Corralation between PAM Mineral and Trinitan Metals
If you would invest 27,200 in PAM Mineral Tbk on August 29, 2024 and sell it today you would earn a total of 3,400 from holding PAM Mineral Tbk or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PAM Mineral Tbk vs. Trinitan Metals and
Performance |
| Timeline |
| PAM Mineral Tbk |
| Trinitan Metals |
PAM Mineral and Trinitan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PAM Mineral and Trinitan Metals
The main advantage of trading using opposite PAM Mineral and Trinitan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PAM Mineral position performs unexpectedly, Trinitan Metals 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 Trinitan Metals will offset losses from the drop in Trinitan Metals' long position.| PAM Mineral vs. Archi Indonesia Tbk | PAM Mineral vs. Bumi Resources Minerals | PAM Mineral vs. Bank Panin Syariah | PAM Mineral vs. Central Omega Resources |
| Trinitan Metals vs. Ashmore Asset Management | Trinitan Metals vs. Intermedia Capital Tbk | Trinitan Metals vs. Fast Food Indonesia | Trinitan Metals vs. Sentra Food Indonesia |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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