Correlation Between Optima Prima and Trimegah Securities
Can any of the company-specific risk be diversified away by investing in both Optima Prima and Trimegah Securities 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 Optima Prima and Trimegah Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optima Prima Metal and Trimegah Securities Tbk, you can compare the effects of market volatilities on Optima Prima and Trimegah Securities 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 Optima Prima with a short position of Trimegah Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Prima and Trimegah Securities.
Diversification Opportunities for Optima Prima and Trimegah Securities
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Optima and Trimegah is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Optima Prima Metal and Trimegah Securities Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Securities Tbk and Optima Prima 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 Optima Prima Metal are associated (or correlated) with Trimegah Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Securities Tbk has no effect on the direction of Optima Prima i.e., Optima Prima and Trimegah Securities go up and down completely randomly.
Pair Corralation between Optima Prima and Trimegah Securities
Assuming the 90 days trading horizon Optima Prima Metal is expected to under-perform the Trimegah Securities. In addition to that, Optima Prima is 1.37 times more volatile than Trimegah Securities Tbk. It trades about -0.34 of its total potential returns per unit of risk. Trimegah Securities Tbk is currently generating about 0.23 per unit of volatility. If you would invest 29,400 in Trimegah Securities Tbk on August 31, 2024 and sell it today you would earn a total of 4,600 from holding Trimegah Securities Tbk or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optima Prima Metal vs. Trimegah Securities Tbk
Performance |
| Timeline |
| Optima Prima Metal |
| Trimegah Securities Tbk |
Optima Prima and Trimegah Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optima Prima and Trimegah Securities
The main advantage of trading using opposite Optima Prima and Trimegah Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Prima position performs unexpectedly, Trimegah Securities 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 Securities will offset losses from the drop in Trimegah Securities' long position.| Optima Prima vs. Emdeki Utama Tbk | Optima Prima vs. Nusantara Almazia | Optima Prima vs. Sentral Mitra Informatika | Optima Prima vs. Darmi Bersaudara Tbk |
| Trimegah Securities vs. Wahana Ottomitra Multiartha | Trimegah Securities vs. Paninvest Tbk | Trimegah Securities vs. Sinar Mas Multiartha | Trimegah Securities vs. Trias Sentosa Tbk |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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