Correlation Between Triputra Agro and Aneka Gas
Can any of the company-specific risk be diversified away by investing in both Triputra Agro and Aneka Gas 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 Triputra Agro and Aneka Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triputra Agro Persada and Aneka Gas Industri, you can compare the effects of market volatilities on Triputra Agro and Aneka Gas 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 Triputra Agro with a short position of Aneka Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triputra Agro and Aneka Gas.
Diversification Opportunities for Triputra Agro and Aneka Gas
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Triputra and Aneka is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Triputra Agro Persada and Aneka Gas Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aneka Gas Industri and Triputra Agro 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 Triputra Agro Persada are associated (or correlated) with Aneka Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aneka Gas Industri has no effect on the direction of Triputra Agro i.e., Triputra Agro and Aneka Gas go up and down completely randomly.
Pair Corralation between Triputra Agro and Aneka Gas
Assuming the 90 days trading horizon Triputra Agro Persada is expected to generate 0.52 times more return on investment than Aneka Gas. However, Triputra Agro Persada is 1.91 times less risky than Aneka Gas. It trades about -0.05 of its potential returns per unit of risk. Aneka Gas Industri is currently generating about -0.04 per unit of risk. If you would invest 79,000 in Triputra Agro Persada on November 27, 2024 and sell it today you would lose (1,500) from holding Triputra Agro Persada or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triputra Agro Persada vs. Aneka Gas Industri
Performance |
| Timeline |
| Triputra Agro Persada |
| Aneka Gas Industri |
Triputra Agro and Aneka Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triputra Agro and Aneka Gas
The main advantage of trading using opposite Triputra Agro and Aneka Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triputra Agro position performs unexpectedly, Aneka Gas 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 Aneka Gas will offset losses from the drop in Aneka Gas' long position.| Triputra Agro vs. Dharma Satya Nusantara | Triputra Agro vs. Saratoga Investama Sedaya | Triputra Agro vs. Surya Esa Perkasa | Triputra Agro vs. Elang Mahkota Teknologi |
| Aneka Gas vs. Surya Esa Perkasa | Aneka Gas vs. Elang Mahkota Teknologi | Aneka Gas vs. Merdeka Copper Gold | Aneka Gas vs. Saratoga Investama Sedaya |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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