Correlation Between Tourindo Guide and Trimegah Securities
Can any of the company-specific risk be diversified away by investing in both Tourindo Guide 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 Tourindo Guide and Trimegah Securities 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 Trimegah Securities Tbk, you can compare the effects of market volatilities on Tourindo Guide 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 Tourindo Guide with a short position of Trimegah Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tourindo Guide and Trimegah Securities.
Diversification Opportunities for Tourindo Guide and Trimegah Securities
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tourindo and Trimegah is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Tourindo Guide Indonesia 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 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 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 Tourindo Guide i.e., Tourindo Guide and Trimegah Securities go up and down completely randomly.
Pair Corralation between Tourindo Guide and Trimegah Securities
Assuming the 90 days trading horizon Tourindo Guide Indonesia is expected to generate 0.9 times more return on investment than Trimegah Securities. However, Tourindo Guide Indonesia is 1.11 times less risky than Trimegah Securities. It trades about 0.07 of its potential returns per unit of risk. Trimegah Securities Tbk is currently generating about 0.06 per unit of risk. If you would invest 8,100 in Tourindo Guide Indonesia on December 11, 2024 and sell it today you would earn a total of 3,500 from holding Tourindo Guide Indonesia or generate 43.21% 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. Trimegah Securities Tbk
Performance |
| Timeline |
| Tourindo Guide Indonesia |
| Trimegah Securities Tbk |
Tourindo Guide and Trimegah Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tourindo Guide and Trimegah Securities
The main advantage of trading using opposite Tourindo Guide and Trimegah Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tourindo Guide 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.| Tourindo Guide vs. Cashlez Worldwide 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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