Correlation Between Tunas Baru and Austindo Nusantara
Can any of the company-specific risk be diversified away by investing in both Tunas Baru and Austindo Nusantara 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 Tunas Baru and Austindo Nusantara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tunas Baru Lampung and Austindo Nusantara Jaya, you can compare the effects of market volatilities on Tunas Baru and Austindo Nusantara 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 Tunas Baru with a short position of Austindo Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tunas Baru and Austindo Nusantara.
Diversification Opportunities for Tunas Baru and Austindo Nusantara
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tunas and Austindo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Tunas Baru Lampung and Austindo Nusantara Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austindo Nusantara Jaya and Tunas Baru 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 Tunas Baru Lampung are associated (or correlated) with Austindo Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austindo Nusantara Jaya has no effect on the direction of Tunas Baru i.e., Tunas Baru and Austindo Nusantara go up and down completely randomly.
Pair Corralation between Tunas Baru and Austindo Nusantara
Assuming the 90 days trading horizon Tunas Baru Lampung is expected to under-perform the Austindo Nusantara. In addition to that, Tunas Baru is 1.26 times more volatile than Austindo Nusantara Jaya. It trades about -0.08 of its total potential returns per unit of risk. Austindo Nusantara Jaya is currently generating about 0.0 per unit of volatility. If you would invest 73,500 in Austindo Nusantara Jaya on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Austindo Nusantara Jaya or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tunas Baru Lampung vs. Austindo Nusantara Jaya
Performance |
| Timeline |
| Tunas Baru Lampung |
| Austindo Nusantara Jaya |
Tunas Baru and Austindo Nusantara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tunas Baru and Austindo Nusantara
The main advantage of trading using opposite Tunas Baru and Austindo Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tunas Baru position performs unexpectedly, Austindo Nusantara 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 Austindo Nusantara will offset losses from the drop in Austindo Nusantara's long position.| Tunas Baru vs. Austindo Nusantara Jaya | Tunas Baru vs. Garudafood Putra Putri | Tunas Baru vs. Provident Agro Tbk | Tunas Baru vs. Dharma Satya Nusantara |
| Austindo Nusantara vs. Garudafood Putra Putri | Austindo Nusantara vs. Provident Agro Tbk | Austindo Nusantara vs. Dharma Satya Nusantara | Austindo Nusantara vs. Sawit Sumbermas Sarana |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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