Correlation Between Tourindo Guide and Minna Padi
Can any of the company-specific risk be diversified away by investing in both Tourindo Guide and Minna Padi 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 Tourindo Guide and Minna Padi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tourindo Guide Indonesia and Minna Padi Investama, you can compare the effects of market volatilities on Tourindo Guide and Minna Padi 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 Tourindo Guide with a short position of Minna Padi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tourindo Guide and Minna Padi.
Diversification Opportunities for Tourindo Guide and Minna Padi
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tourindo and Minna is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tourindo Guide Indonesia and Minna Padi Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minna Padi Investama and Tourindo Guide 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 Tourindo Guide Indonesia are associated (or correlated) with Minna Padi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minna Padi Investama has no effect on the direction of Tourindo Guide i.e., Tourindo Guide and Minna Padi go up and down completely randomly.
Pair Corralation between Tourindo Guide and Minna Padi
Assuming the 90 days trading horizon Tourindo Guide Indonesia is expected to generate 0.18 times more return on investment than Minna Padi. However, Tourindo Guide Indonesia is 5.46 times less risky than Minna Padi. It trades about 0.19 of its potential returns per unit of risk. Minna Padi Investama is currently generating about 0.03 per unit of risk. If you would invest 9,000 in Tourindo Guide Indonesia on August 27, 2024 and sell it today you would earn a total of 400.00 from holding Tourindo Guide Indonesia or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tourindo Guide Indonesia vs. Minna Padi Investama
Performance |
| Timeline |
| Tourindo Guide Indonesia |
| Minna Padi Investama |
Tourindo Guide and Minna Padi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tourindo Guide and Minna Padi
The main advantage of trading using opposite Tourindo Guide and Minna Padi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tourindo Guide position performs unexpectedly, Minna Padi 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 Minna Padi will offset losses from the drop in Minna Padi's long position.| Tourindo Guide vs. Integra Indocabinet Tbk | Tourindo Guide vs. Multistrada Arah Sarana | Tourindo Guide vs. PT MNC Energy | Tourindo Guide vs. J Resources Asia |
| Minna Padi vs. Panca Global Securities | Minna Padi vs. Panin Sekuritas Tbk | Minna Padi vs. Reliance Securities Tbk | Minna Padi vs. Bank Nationalnobu 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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