Correlation Between PT Techno9 and Colorpak Indonesia
Can any of the company-specific risk be diversified away by investing in both PT Techno9 and Colorpak Indonesia 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 PT Techno9 and Colorpak Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Techno9 Indonesia and Colorpak Indonesia Tbk, you can compare the effects of market volatilities on PT Techno9 and Colorpak Indonesia 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 PT Techno9 with a short position of Colorpak Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and Colorpak Indonesia.
Diversification Opportunities for PT Techno9 and Colorpak Indonesia
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NINE and Colorpak is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia and Colorpak Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colorpak Indonesia Tbk and PT Techno9 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 PT Techno9 Indonesia are associated (or correlated) with Colorpak Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colorpak Indonesia Tbk has no effect on the direction of PT Techno9 i.e., PT Techno9 and Colorpak Indonesia go up and down completely randomly.
Pair Corralation between PT Techno9 and Colorpak Indonesia
Assuming the 90 days trading horizon PT Techno9 Indonesia is expected to generate 13.21 times more return on investment than Colorpak Indonesia. However, PT Techno9 is 13.21 times more volatile than Colorpak Indonesia Tbk. It trades about 0.63 of its potential returns per unit of risk. Colorpak Indonesia Tbk is currently generating about -0.15 per unit of risk. If you would invest 800.00 in PT Techno9 Indonesia on August 29, 2024 and sell it today you would earn a total of 2,800 from holding PT Techno9 Indonesia or generate 350.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. Colorpak Indonesia Tbk
Performance |
| Timeline |
| PT Techno9 Indonesia |
| Colorpak Indonesia Tbk |
PT Techno9 and Colorpak Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and Colorpak Indonesia
The main advantage of trading using opposite PT Techno9 and Colorpak Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 position performs unexpectedly, Colorpak Indonesia 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 Colorpak Indonesia will offset losses from the drop in Colorpak Indonesia's long position.| PT Techno9 vs. Ciptadana Asset Management | PT Techno9 vs. Humpuss Intermoda Transportasi | PT Techno9 vs. Metrodata Electronics Tbk | PT Techno9 vs. Indorama Synthetics Tbk |
| Colorpak Indonesia vs. Ekadharma International Tbk | Colorpak Indonesia vs. Enseval Putra Megatrading | Colorpak Indonesia vs. Duta Pertiwi Nusantara | Colorpak Indonesia vs. Wilmar Cahaya 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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