Correlation Between Steady Safe and Rig Tenders
Can any of the company-specific risk be diversified away by investing in both Steady Safe and Rig Tenders 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 Steady Safe and Rig Tenders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steady Safe TBK and Rig Tenders Tbk, you can compare the effects of market volatilities on Steady Safe and Rig Tenders 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 Steady Safe with a short position of Rig Tenders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steady Safe and Rig Tenders.
Diversification Opportunities for Steady Safe and Rig Tenders
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steady and Rig is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Steady Safe TBK and Rig Tenders Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rig Tenders Tbk and Steady Safe 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 Steady Safe TBK are associated (or correlated) with Rig Tenders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rig Tenders Tbk has no effect on the direction of Steady Safe i.e., Steady Safe and Rig Tenders go up and down completely randomly.
Pair Corralation between Steady Safe and Rig Tenders
Assuming the 90 days trading horizon Steady Safe TBK is expected to generate 2.84 times more return on investment than Rig Tenders. However, Steady Safe is 2.84 times more volatile than Rig Tenders Tbk. It trades about 0.1 of its potential returns per unit of risk. Rig Tenders Tbk is currently generating about -0.38 per unit of risk. If you would invest 20,800 in Steady Safe TBK on November 2, 2024 and sell it today you would earn a total of 2,200 from holding Steady Safe TBK or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steady Safe TBK vs. Rig Tenders Tbk
Performance |
| Timeline |
| Steady Safe TBK |
| Rig Tenders Tbk |
Steady Safe and Rig Tenders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steady Safe and Rig Tenders
The main advantage of trading using opposite Steady Safe and Rig Tenders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steady Safe position performs unexpectedly, Rig Tenders 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 Rig Tenders will offset losses from the drop in Rig Tenders' long position.| Steady Safe vs. Rig Tenders Tbk | Steady Safe vs. Weha Transportasi Indonesia | Steady Safe vs. Dosni Roha Indonesia | Steady Safe vs. Samudera Indonesia Tbk |
| Rig Tenders vs. Samudera Indonesia Tbk | Rig Tenders vs. Steady Safe TBK | Rig Tenders vs. Rukun Raharja Tbk | Rig Tenders vs. PT Temas 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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