Correlation Between Perusahaan Gas and Tridomain Performance
Can any of the company-specific risk be diversified away by investing in both Perusahaan Gas and Tridomain Performance 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 Tridomain Performance 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 Tridomain Performance Materials, you can compare the effects of market volatilities on Perusahaan Gas and Tridomain Performance 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 Tridomain Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Gas and Tridomain Performance.
Diversification Opportunities for Perusahaan Gas and Tridomain Performance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Perusahaan and Tridomain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Gas Negara and Tridomain Performance Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tridomain Performance 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 Tridomain Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tridomain Performance has no effect on the direction of Perusahaan Gas i.e., Perusahaan Gas and Tridomain Performance go up and down completely randomly.
Pair Corralation between Perusahaan Gas and Tridomain Performance
If you would invest 153,000 in Perusahaan Gas Negara on September 2, 2024 and sell it today you would lose (500.00) from holding Perusahaan Gas Negara or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Perusahaan Gas Negara vs. Tridomain Performance Material
Performance |
| Timeline |
| Perusahaan Gas Negara |
| Tridomain Performance |
Perusahaan Gas and Tridomain Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Gas and Tridomain Performance
The main advantage of trading using opposite Perusahaan Gas and Tridomain Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Gas position performs unexpectedly, Tridomain Performance 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 Tridomain Performance will offset losses from the drop in Tridomain Performance'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 |
| Tridomain Performance vs. PT Wahana Interfood | Tridomain Performance vs. Yelooo Integra Datanet | Tridomain Performance vs. PT UBC Medical | Tridomain Performance vs. Equity Development Investment |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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