Correlation Between Tigaraksa Satria and Tempo Inti
Can any of the company-specific risk be diversified away by investing in both Tigaraksa Satria and Tempo Inti 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 Tigaraksa Satria and Tempo Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tigaraksa Satria Tbk and Tempo Inti Media, you can compare the effects of market volatilities on Tigaraksa Satria and Tempo Inti 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 Tigaraksa Satria with a short position of Tempo Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tigaraksa Satria and Tempo Inti.
Diversification Opportunities for Tigaraksa Satria and Tempo Inti
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tigaraksa and Tempo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Tigaraksa Satria Tbk and Tempo Inti Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tempo Inti Media and Tigaraksa Satria 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 Tigaraksa Satria Tbk are associated (or correlated) with Tempo Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tempo Inti Media has no effect on the direction of Tigaraksa Satria i.e., Tigaraksa Satria and Tempo Inti go up and down completely randomly.
Pair Corralation between Tigaraksa Satria and Tempo Inti
Assuming the 90 days trading horizon Tigaraksa Satria is expected to generate 39.99 times less return on investment than Tempo Inti. But when comparing it to its historical volatility, Tigaraksa Satria Tbk is 4.0 times less risky than Tempo Inti. It trades about 0.01 of its potential returns per unit of risk. Tempo Inti Media is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,700 in Tempo Inti Media on September 3, 2024 and sell it today you would earn a total of 5,500 from holding Tempo Inti Media or generate 82.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tigaraksa Satria Tbk vs. Tempo Inti Media
Performance |
| Timeline |
| Tigaraksa Satria Tbk |
| Tempo Inti Media |
Tigaraksa Satria and Tempo Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tigaraksa Satria and Tempo Inti
The main advantage of trading using opposite Tigaraksa Satria and Tempo Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tigaraksa Satria position performs unexpectedly, Tempo Inti 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 Tempo Inti will offset losses from the drop in Tempo Inti's long position.| Tigaraksa Satria vs. Astra International Tbk | Tigaraksa Satria vs. Unilever Indonesia Tbk | Tigaraksa Satria vs. Telkom Indonesia Tbk | Tigaraksa Satria vs. Bank Mandiri Persero |
| Tempo Inti vs. Indosat Tbk | Tempo Inti vs. Energi Mega Persada | Tempo Inti vs. Mitra Pinasthika Mustika | Tempo Inti vs. Jakarta Int Hotels |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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