Correlation Between PT Techno9 and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both PT Techno9 and Trimegah Karya 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 Trimegah Karya 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 Trimegah Karya Pratama, you can compare the effects of market volatilities on PT Techno9 and Trimegah Karya 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 Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and Trimegah Karya.
Diversification Opportunities for PT Techno9 and Trimegah Karya
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NINE and Trimegah is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia and Trimegah Karya Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Karya Pratama 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 Trimegah Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Karya Pratama has no effect on the direction of PT Techno9 i.e., PT Techno9 and Trimegah Karya go up and down completely randomly.
Pair Corralation between PT Techno9 and Trimegah Karya
Assuming the 90 days trading horizon PT Techno9 Indonesia is expected to generate 1.96 times more return on investment than Trimegah Karya. However, PT Techno9 is 1.96 times more volatile than Trimegah Karya Pratama. It trades about 0.05 of its potential returns per unit of risk. Trimegah Karya Pratama is currently generating about 0.0 per unit of risk. If you would invest 2,900 in PT Techno9 Indonesia on September 2, 2024 and sell it today you would earn a total of 1,300 from holding PT Techno9 Indonesia or generate 44.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. Trimegah Karya Pratama
Performance |
| Timeline |
| PT Techno9 Indonesia |
| Trimegah Karya Pratama |
PT Techno9 and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and Trimegah Karya
The main advantage of trading using opposite PT Techno9 and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 position performs unexpectedly, Trimegah Karya 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 Trimegah Karya will offset losses from the drop in Trimegah Karya's long position.| PT Techno9 vs. Multipolar Technology Tbk | PT Techno9 vs. Digital Mediatama Maxima | PT Techno9 vs. NFC Indonesia PT | PT Techno9 vs. Kioson Komersial Indonesia |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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