Correlation Between Tifico Fiber and Sejahteraraya Anugrahjaya
Can any of the company-specific risk be diversified away by investing in both Tifico Fiber and Sejahteraraya Anugrahjaya 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 Tifico Fiber and Sejahteraraya Anugrahjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tifico Fiber Indonesia and Sejahteraraya Anugrahjaya Tbk, you can compare the effects of market volatilities on Tifico Fiber and Sejahteraraya Anugrahjaya 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 Tifico Fiber with a short position of Sejahteraraya Anugrahjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tifico Fiber and Sejahteraraya Anugrahjaya.
Diversification Opportunities for Tifico Fiber and Sejahteraraya Anugrahjaya
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tifico and Sejahteraraya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tifico Fiber Indonesia and Sejahteraraya Anugrahjaya Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejahteraraya Anugrahjaya and Tifico Fiber 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 Tifico Fiber Indonesia are associated (or correlated) with Sejahteraraya Anugrahjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejahteraraya Anugrahjaya has no effect on the direction of Tifico Fiber i.e., Tifico Fiber and Sejahteraraya Anugrahjaya go up and down completely randomly.
Pair Corralation between Tifico Fiber and Sejahteraraya Anugrahjaya
Assuming the 90 days trading horizon Tifico Fiber Indonesia is expected to under-perform the Sejahteraraya Anugrahjaya. But the stock apears to be less risky and, when comparing its historical volatility, Tifico Fiber Indonesia is 4.95 times less risky than Sejahteraraya Anugrahjaya. The stock trades about -0.01 of its potential returns per unit of risk. The Sejahteraraya Anugrahjaya Tbk is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 59,500 in Sejahteraraya Anugrahjaya Tbk on September 3, 2024 and sell it today you would earn a total of 228,500 from holding Sejahteraraya Anugrahjaya Tbk or generate 384.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tifico Fiber Indonesia vs. Sejahteraraya Anugrahjaya Tbk
Performance |
| Timeline |
| Tifico Fiber Indonesia |
| Sejahteraraya Anugrahjaya |
Tifico Fiber and Sejahteraraya Anugrahjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tifico Fiber and Sejahteraraya Anugrahjaya
The main advantage of trading using opposite Tifico Fiber and Sejahteraraya Anugrahjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tifico Fiber position performs unexpectedly, Sejahteraraya Anugrahjaya 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 Sejahteraraya Anugrahjaya will offset losses from the drop in Sejahteraraya Anugrahjaya's long position.| Tifico Fiber vs. Mitra Pinasthika Mustika | Tifico Fiber vs. Jakarta Int Hotels | Tifico Fiber vs. Asuransi Harta Aman | Tifico Fiber vs. Indosterling Technomedia 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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