Correlation Between Triputra Agro and Diagnos Laboratorium
Can any of the company-specific risk be diversified away by investing in both Triputra Agro and Diagnos Laboratorium 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 Diagnos Laboratorium 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 Diagnos Laboratorium Utama, you can compare the effects of market volatilities on Triputra Agro and Diagnos Laboratorium 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 Diagnos Laboratorium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triputra Agro and Diagnos Laboratorium.
Diversification Opportunities for Triputra Agro and Diagnos Laboratorium
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Triputra and Diagnos is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Triputra Agro Persada and Diagnos Laboratorium Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diagnos Laboratorium 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 Diagnos Laboratorium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diagnos Laboratorium has no effect on the direction of Triputra Agro i.e., Triputra Agro and Diagnos Laboratorium go up and down completely randomly.
Pair Corralation between Triputra Agro and Diagnos Laboratorium
Assuming the 90 days trading horizon Triputra Agro Persada is expected to under-perform the Diagnos Laboratorium. But the stock apears to be less risky and, when comparing its historical volatility, Triputra Agro Persada is 1.86 times less risky than Diagnos Laboratorium. The stock trades about -0.09 of its potential returns per unit of risk. The Diagnos Laboratorium Utama is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 23,400 in Diagnos Laboratorium Utama on August 29, 2024 and sell it today you would lose (1,000.00) from holding Diagnos Laboratorium Utama or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triputra Agro Persada vs. Diagnos Laboratorium Utama
Performance |
| Timeline |
| Triputra Agro Persada |
| Diagnos Laboratorium |
Triputra Agro and Diagnos Laboratorium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triputra Agro and Diagnos Laboratorium
The main advantage of trading using opposite Triputra Agro and Diagnos Laboratorium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triputra Agro position performs unexpectedly, Diagnos Laboratorium 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 Diagnos Laboratorium will offset losses from the drop in Diagnos Laboratorium's 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 |
| Diagnos Laboratorium vs. Prodia Widyahusada Tbk | Diagnos Laboratorium vs. Medikaloka Hermina PT | Diagnos Laboratorium vs. Digital Mediatama Maxima | Diagnos Laboratorium vs. Integra Indocabinet 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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