Correlation Between Sunson Textile and Trisula International
Can any of the company-specific risk be diversified away by investing in both Sunson Textile and Trisula International 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 Trisula International 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 Trisula International Tbk, you can compare the effects of market volatilities on Sunson Textile and Trisula International 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 Trisula International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunson Textile and Trisula International.
Diversification Opportunities for Sunson Textile and Trisula International
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunson and Trisula is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sunson Textile Manufacturer and Trisula International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisula International Tbk 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 Trisula International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisula International Tbk has no effect on the direction of Sunson Textile i.e., Sunson Textile and Trisula International go up and down completely randomly.
Pair Corralation between Sunson Textile and Trisula International
Assuming the 90 days trading horizon Sunson Textile Manufacturer is expected to generate 2.29 times more return on investment than Trisula International. However, Sunson Textile is 2.29 times more volatile than Trisula International Tbk. It trades about 0.01 of its potential returns per unit of risk. Trisula International Tbk is currently generating about -0.04 per unit of risk. If you would invest 22,000 in Sunson Textile Manufacturer on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Sunson Textile Manufacturer or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunson Textile Manufacturer vs. Trisula International Tbk
Performance |
| Timeline |
| Sunson Textile Manuf |
| Trisula International Tbk |
Sunson Textile and Trisula International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunson Textile and Trisula International
The main advantage of trading using opposite Sunson Textile and Trisula International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunson Textile position performs unexpectedly, Trisula International 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 Trisula International will offset losses from the drop in Trisula International's long position.| Sunson Textile vs. Tifico Fiber Indonesia | Sunson Textile vs. Ricky Putra Globalindo | Sunson Textile vs. Supreme Cable Manufacturing | Sunson Textile vs. Voksel Electric Tbk |
| Trisula International vs. PT Buana Artha | Trisula International vs. Tifico Fiber Indonesia | Trisula International vs. Voksel Electric Tbk | Trisula International vs. Sunson Textile Manufacturer |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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