Correlation Between Tigaraksa Satria and Wahana Pronatural
Can any of the company-specific risk be diversified away by investing in both Tigaraksa Satria and Wahana Pronatural 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 Wahana Pronatural 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 Wahana Pronatural, you can compare the effects of market volatilities on Tigaraksa Satria and Wahana Pronatural 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 Wahana Pronatural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tigaraksa Satria and Wahana Pronatural.
Diversification Opportunities for Tigaraksa Satria and Wahana Pronatural
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tigaraksa and Wahana is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tigaraksa Satria Tbk and Wahana Pronatural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Pronatural 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 Wahana Pronatural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Pronatural has no effect on the direction of Tigaraksa Satria i.e., Tigaraksa Satria and Wahana Pronatural go up and down completely randomly.
Pair Corralation between Tigaraksa Satria and Wahana Pronatural
Assuming the 90 days trading horizon Tigaraksa Satria Tbk is expected to generate 0.48 times more return on investment than Wahana Pronatural. However, Tigaraksa Satria Tbk is 2.08 times less risky than Wahana Pronatural. It trades about 0.0 of its potential returns per unit of risk. Wahana Pronatural is currently generating about -0.02 per unit of risk. If you would invest 637,607 in Tigaraksa Satria Tbk on September 1, 2024 and sell it today you would lose (22,607) from holding Tigaraksa Satria Tbk or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Tigaraksa Satria Tbk vs. Wahana Pronatural
Performance |
| Timeline |
| Tigaraksa Satria Tbk |
| Wahana Pronatural |
Tigaraksa Satria and Wahana Pronatural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tigaraksa Satria and Wahana Pronatural
The main advantage of trading using opposite Tigaraksa Satria and Wahana Pronatural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tigaraksa Satria position performs unexpectedly, Wahana Pronatural 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 Wahana Pronatural will offset losses from the drop in Wahana Pronatural's long position.| Tigaraksa Satria vs. Wicaksana Overseas International | Tigaraksa Satria vs. Tira Austenite Tbk | Tigaraksa Satria vs. Wahana Pronatural | Tigaraksa Satria vs. Millennium Pharmacon International |
| Wahana Pronatural vs. Wicaksana Overseas International | Wahana Pronatural vs. Millennium Pharmacon International | Wahana Pronatural vs. Tigaraksa Satria Tbk | Wahana Pronatural vs. Tempo Inti Media |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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