Correlation Between Tower Bersama and Solusi Tunas
Can any of the company-specific risk be diversified away by investing in both Tower Bersama and Solusi Tunas 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 Tower Bersama and Solusi Tunas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower Bersama Infrastructure and Solusi Tunas Pratama, you can compare the effects of market volatilities on Tower Bersama and Solusi Tunas 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 Tower Bersama with a short position of Solusi Tunas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower Bersama and Solusi Tunas.
Diversification Opportunities for Tower Bersama and Solusi Tunas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tower and Solusi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tower Bersama Infrastructure and Solusi Tunas Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solusi Tunas Pratama and Tower Bersama 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 Tower Bersama Infrastructure are associated (or correlated) with Solusi Tunas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solusi Tunas Pratama has no effect on the direction of Tower Bersama i.e., Tower Bersama and Solusi Tunas go up and down completely randomly.
Pair Corralation between Tower Bersama and Solusi Tunas
Assuming the 90 days trading horizon Tower Bersama Infrastructure is expected to under-perform the Solusi Tunas. In addition to that, Tower Bersama is 1.68 times more volatile than Solusi Tunas Pratama. It trades about -0.01 of its total potential returns per unit of risk. Solusi Tunas Pratama is currently generating about 0.04 per unit of volatility. If you would invest 3,750,000 in Solusi Tunas Pratama on September 4, 2024 and sell it today you would earn a total of 637,500 from holding Solusi Tunas Pratama or generate 17.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tower Bersama Infrastructure vs. Solusi Tunas Pratama
Performance |
| Timeline |
| Tower Bersama Infras |
| Solusi Tunas Pratama |
Tower Bersama and Solusi Tunas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tower Bersama and Solusi Tunas
The main advantage of trading using opposite Tower Bersama and Solusi Tunas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower Bersama position performs unexpectedly, Solusi Tunas 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 Solusi Tunas will offset losses from the drop in Solusi Tunas' long position.| Tower Bersama vs. PT Sarana Menara | Tower Bersama vs. XL Axiata Tbk | Tower Bersama vs. Merdeka Copper Gold | Tower Bersama vs. Surya Citra Media |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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