Correlation Between Sunson Textile and Tifico Fiber
Can any of the company-specific risk be diversified away by investing in both Sunson Textile and Tifico Fiber 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 Sunson Textile and Tifico Fiber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunson Textile Manufacturer and Tifico Fiber Indonesia, you can compare the effects of market volatilities on Sunson Textile and Tifico Fiber 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 Sunson Textile with a short position of Tifico Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunson Textile and Tifico Fiber.
Diversification Opportunities for Sunson Textile and Tifico Fiber
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunson and Tifico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunson Textile Manufacturer and Tifico Fiber Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tifico Fiber Indonesia and Sunson Textile 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 Sunson Textile Manufacturer are associated (or correlated) with Tifico Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tifico Fiber Indonesia has no effect on the direction of Sunson Textile i.e., Sunson Textile and Tifico Fiber go up and down completely randomly.
Pair Corralation between Sunson Textile and Tifico Fiber
If you would invest 16,800 in Sunson Textile Manufacturer on August 30, 2024 and sell it today you would earn a total of 1,800 from holding Sunson Textile Manufacturer or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunson Textile Manufacturer vs. Tifico Fiber Indonesia
Performance |
| Timeline |
| Sunson Textile Manuf |
| Tifico Fiber Indonesia |
Sunson Textile and Tifico Fiber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunson Textile and Tifico Fiber
The main advantage of trading using opposite Sunson Textile and Tifico Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunson Textile position performs unexpectedly, Tifico Fiber 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 Tifico Fiber will offset losses from the drop in Tifico Fiber's long position.| Sunson Textile vs. Pembangunan Jaya Ancol | Sunson Textile vs. Panorama Sentrawisata Tbk | Sunson Textile vs. Millennium Pharmacon International | Sunson Textile vs. Tempo Inti Media |
| Tifico Fiber vs. Sunson Textile Manufacturer | Tifico Fiber vs. Voksel Electric Tbk | Tifico Fiber vs. Ricky Putra Globalindo | Tifico Fiber vs. Supreme Cable Manufacturing |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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