Correlation Between Perusahaan Gas and Tower Bersama
Can any of the company-specific risk be diversified away by investing in both Perusahaan Gas and Tower Bersama 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 Perusahaan Gas and Tower Bersama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perusahaan Gas Negara and Tower Bersama Infrastructure, you can compare the effects of market volatilities on Perusahaan Gas and Tower Bersama 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 Perusahaan Gas with a short position of Tower Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Gas and Tower Bersama.
Diversification Opportunities for Perusahaan Gas and Tower Bersama
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Perusahaan and Tower is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Gas Negara and Tower Bersama Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Bersama Infras and Perusahaan Gas 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 Perusahaan Gas Negara are associated (or correlated) with Tower Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Bersama Infras has no effect on the direction of Perusahaan Gas i.e., Perusahaan Gas and Tower Bersama go up and down completely randomly.
Pair Corralation between Perusahaan Gas and Tower Bersama
Assuming the 90 days trading horizon Perusahaan Gas Negara is expected to generate 2.07 times more return on investment than Tower Bersama. However, Perusahaan Gas is 2.07 times more volatile than Tower Bersama Infrastructure. It trades about 0.01 of its potential returns per unit of risk. Tower Bersama Infrastructure is currently generating about -0.06 per unit of risk. If you would invest 161,000 in Perusahaan Gas Negara on November 3, 2024 and sell it today you would lose (500.00) from holding Perusahaan Gas Negara or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perusahaan Gas Negara vs. Tower Bersama Infrastructure
Performance |
| Timeline |
| Perusahaan Gas Negara |
| Tower Bersama Infras |
Perusahaan Gas and Tower Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Gas and Tower Bersama
The main advantage of trading using opposite Perusahaan Gas and Tower Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Gas position performs unexpectedly, Tower Bersama 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 Tower Bersama will offset losses from the drop in Tower Bersama's long position.| Perusahaan Gas vs. Aneka Tambang Persero | Perusahaan Gas vs. Bukit Asam Tbk | Perusahaan Gas vs. Telkom Indonesia Tbk | Perusahaan Gas vs. Astra International Tbk |
| Tower Bersama vs. PT Sarana Menara | Tower Bersama vs. XL Axiata Tbk | Tower Bersama vs. Merdeka Copper Gold | Tower Bersama vs. Surya Citra Media |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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