Correlation Between Tifico Fiber and Sunson Textile
Can any of the company-specific risk be diversified away by investing in both Tifico Fiber and Sunson Textile 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 Sunson Textile 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 Sunson Textile Manufacturer, you can compare the effects of market volatilities on Tifico Fiber and Sunson Textile 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 Sunson Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tifico Fiber and Sunson Textile.
Diversification Opportunities for Tifico Fiber and Sunson Textile
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tifico and Sunson is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Tifico Fiber Indonesia and Sunson Textile Manufacturer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunson Textile Manuf 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 Sunson Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunson Textile Manuf has no effect on the direction of Tifico Fiber i.e., Tifico Fiber and Sunson Textile go up and down completely randomly.
Pair Corralation between Tifico Fiber and Sunson Textile
Assuming the 90 days trading horizon Tifico Fiber Indonesia is expected to under-perform the Sunson Textile. In addition to that, Tifico Fiber is 1.04 times more volatile than Sunson Textile Manufacturer. It trades about -0.43 of its total potential returns per unit of risk. Sunson Textile Manufacturer is currently generating about -0.06 per unit of volatility. If you would invest 23,600 in Sunson Textile Manufacturer on November 18, 2024 and sell it today you would lose (1,000.00) from holding Sunson Textile Manufacturer or give up 4.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Tifico Fiber Indonesia vs. Sunson Textile Manufacturer
Performance |
| Timeline |
| Tifico Fiber Indonesia |
| Sunson Textile Manuf |
Tifico Fiber and Sunson Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tifico Fiber and Sunson Textile
The main advantage of trading using opposite Tifico Fiber and Sunson Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tifico Fiber position performs unexpectedly, Sunson Textile 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 Sunson Textile will offset losses from the drop in Sunson Textile's long position.| Tifico Fiber vs. Sunson Textile Manufacturer | Tifico Fiber vs. Voksel Electric Tbk | Tifico Fiber vs. Ricky Putra Globalindo | Tifico Fiber vs. Supreme Cable Manufacturing |
| Sunson Textile vs. Tifico Fiber Indonesia | Sunson Textile vs. Ricky Putra Globalindo | Sunson Textile vs. Supreme Cable Manufacturing | Sunson Textile vs. Voksel Electric 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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