Correlation Between Timah Persero and Ifishdeco
Can any of the company-specific risk be diversified away by investing in both Timah Persero and Ifishdeco 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 Timah Persero and Ifishdeco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timah Persero Tbk and Ifishdeco PT, you can compare the effects of market volatilities on Timah Persero and Ifishdeco 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 Timah Persero with a short position of Ifishdeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timah Persero and Ifishdeco.
Diversification Opportunities for Timah Persero and Ifishdeco
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Timah and Ifishdeco is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Timah Persero Tbk and Ifishdeco PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ifishdeco PT and Timah Persero 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 Timah Persero Tbk are associated (or correlated) with Ifishdeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ifishdeco PT has no effect on the direction of Timah Persero i.e., Timah Persero and Ifishdeco go up and down completely randomly.
Pair Corralation between Timah Persero and Ifishdeco
Assuming the 90 days trading horizon Timah Persero Tbk is expected to generate 1.0 times more return on investment than Ifishdeco. However, Timah Persero Tbk is 1.0 times less risky than Ifishdeco. It trades about 0.04 of its potential returns per unit of risk. Ifishdeco PT is currently generating about 0.01 per unit of risk. If you would invest 80,000 in Timah Persero Tbk on January 23, 2025 and sell it today you would earn a total of 27,000 from holding Timah Persero Tbk or generate 33.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Timah Persero Tbk vs. Ifishdeco PT
Performance |
| Timeline |
| Timah Persero Tbk |
| Ifishdeco PT |
Timah Persero and Ifishdeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timah Persero and Ifishdeco
The main advantage of trading using opposite Timah Persero and Ifishdeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timah Persero position performs unexpectedly, Ifishdeco 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 Ifishdeco will offset losses from the drop in Ifishdeco's long position.| Timah Persero vs. Vale Indonesia Tbk | Timah Persero vs. Aneka Tambang Persero | Timah Persero vs. Bukit Asam Tbk | Timah Persero vs. Perusahaan Gas Negara |
| Ifishdeco vs. Gunung Raja Paksi | Ifishdeco vs. Cita Mineral Investindo | Ifishdeco vs. Central Omega Resources | Ifishdeco vs. Indonesia Fibreboard Industry |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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