Correlation Between Triputra Agro and Palma Serasih
Can any of the company-specific risk be diversified away by investing in both Triputra Agro and Palma Serasih 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 Palma Serasih 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 Palma Serasih PT, you can compare the effects of market volatilities on Triputra Agro and Palma Serasih 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 Palma Serasih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triputra Agro and Palma Serasih.
Diversification Opportunities for Triputra Agro and Palma Serasih
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Triputra and Palma is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Triputra Agro Persada and Palma Serasih PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palma Serasih PT 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 Palma Serasih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palma Serasih PT has no effect on the direction of Triputra Agro i.e., Triputra Agro and Palma Serasih go up and down completely randomly.
Pair Corralation between Triputra Agro and Palma Serasih
Assuming the 90 days trading horizon Triputra Agro Persada is expected to under-perform the Palma Serasih. But the stock apears to be less risky and, when comparing its historical volatility, Triputra Agro Persada is 1.03 times less risky than Palma Serasih. The stock trades about -0.03 of its potential returns per unit of risk. The Palma Serasih PT is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 16,100 in Palma Serasih PT on October 26, 2024 and sell it today you would earn a total of 3,000 from holding Palma Serasih PT or generate 18.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Triputra Agro Persada vs. Palma Serasih PT
Performance |
| Timeline |
| Triputra Agro Persada |
| Palma Serasih PT |
Triputra Agro and Palma Serasih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triputra Agro and Palma Serasih
The main advantage of trading using opposite Triputra Agro and Palma Serasih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triputra Agro position performs unexpectedly, Palma Serasih 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 Palma Serasih will offset losses from the drop in Palma Serasih'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 |
| Palma Serasih vs. Mahkota Group Tbk | Palma Serasih vs. Provident Agro Tbk | Palma Serasih vs. Putra Mandiri Jembar | Palma Serasih vs. Cisadane Sawit Raya |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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