Correlation Between Sona Topas and Tempo Inti
Can any of the company-specific risk be diversified away by investing in both Sona Topas and Tempo Inti 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 Sona Topas and Tempo Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sona Topas Tourism and Tempo Inti Media, you can compare the effects of market volatilities on Sona Topas and Tempo Inti 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 Sona Topas with a short position of Tempo Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sona Topas and Tempo Inti.
Diversification Opportunities for Sona Topas and Tempo Inti
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sona and Tempo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sona Topas Tourism and Tempo Inti Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tempo Inti Media and Sona Topas 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 Sona Topas Tourism are associated (or correlated) with Tempo Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tempo Inti Media has no effect on the direction of Sona Topas i.e., Sona Topas and Tempo Inti go up and down completely randomly.
Pair Corralation between Sona Topas and Tempo Inti
Assuming the 90 days trading horizon Sona Topas Tourism is expected to generate 6.2 times more return on investment than Tempo Inti. However, Sona Topas is 6.2 times more volatile than Tempo Inti Media. It trades about 0.05 of its potential returns per unit of risk. Tempo Inti Media is currently generating about 0.03 per unit of risk. If you would invest 182,500 in Sona Topas Tourism on November 2, 2024 and sell it today you would earn a total of 132,500 from holding Sona Topas Tourism or generate 72.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sona Topas Tourism vs. Tempo Inti Media
Performance |
| Timeline |
| Sona Topas Tourism |
| Tempo Inti Media |
Sona Topas and Tempo Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sona Topas and Tempo Inti
The main advantage of trading using opposite Sona Topas and Tempo Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sona Topas position performs unexpectedly, Tempo Inti 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 Tempo Inti will offset losses from the drop in Tempo Inti's long position.| Sona Topas vs. Lippo General Insurance | Sona Topas vs. Equity Development Investment | Sona Topas vs. Indointernet Tbk PT | Sona Topas vs. Ciptadana Asset Management |
| Tempo Inti vs. Wicaksana Overseas International | Tempo Inti vs. Wahana Pronatural | Tempo Inti vs. Tigaraksa Satria Tbk | Tempo Inti vs. Millennium Pharmacon International |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |