Correlation Between Palma Serasih and Triputra Agro
Can any of the company-specific risk be diversified away by investing in both Palma Serasih and Triputra Agro 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 Palma Serasih and Triputra Agro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palma Serasih PT and Triputra Agro Persada, you can compare the effects of market volatilities on Palma Serasih and Triputra Agro 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 Palma Serasih with a short position of Triputra Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palma Serasih and Triputra Agro.
Diversification Opportunities for Palma Serasih and Triputra Agro
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Palma and Triputra is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Palma Serasih PT and Triputra Agro Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triputra Agro Persada and Palma Serasih 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 Palma Serasih PT are associated (or correlated) with Triputra Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triputra Agro Persada has no effect on the direction of Palma Serasih i.e., Palma Serasih and Triputra Agro go up and down completely randomly.
Pair Corralation between Palma Serasih and Triputra Agro
Assuming the 90 days trading horizon Palma Serasih PT is expected to generate 1.39 times more return on investment than Triputra Agro. However, Palma Serasih is 1.39 times more volatile than Triputra Agro Persada. It trades about 0.3 of its potential returns per unit of risk. Triputra Agro Persada is currently generating about -0.19 per unit of risk. If you would invest 16,000 in Palma Serasih PT on September 18, 2024 and sell it today you would earn a total of 3,400 from holding Palma Serasih PT or generate 21.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Palma Serasih PT vs. Triputra Agro Persada
Performance |
| Timeline |
| Palma Serasih PT |
| Triputra Agro Persada |
Palma Serasih and Triputra Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palma Serasih and Triputra Agro
The main advantage of trading using opposite Palma Serasih and Triputra Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palma Serasih position performs unexpectedly, Triputra Agro 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 Triputra Agro will offset losses from the drop in Triputra Agro's long position.| Palma Serasih vs. Mahkota Group Tbk | Palma Serasih vs. Cisadane Sawit Raya | Palma Serasih vs. Diamond Food Indonesia | Palma Serasih vs. Saraswanti Anugerah Makmur |
| Triputra Agro vs. Mahkota Group Tbk | Triputra Agro vs. Palma Serasih PT | Triputra Agro vs. Cisadane Sawit Raya | Triputra Agro vs. Diamond Food Indonesia |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |