Correlation Between Timah Persero and Pelat Timah
Can any of the company-specific risk be diversified away by investing in both Timah Persero and Pelat Timah 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 Pelat Timah 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 Pelat Timah Nusantara, you can compare the effects of market volatilities on Timah Persero and Pelat Timah 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 Pelat Timah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timah Persero and Pelat Timah.
Diversification Opportunities for Timah Persero and Pelat Timah
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Timah and Pelat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Timah Persero Tbk and Pelat Timah Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelat Timah Nusantara 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 Pelat Timah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelat Timah Nusantara has no effect on the direction of Timah Persero i.e., Timah Persero and Pelat Timah go up and down completely randomly.
Pair Corralation between Timah Persero and Pelat Timah
If you would invest 93,194 in Timah Persero Tbk on September 4, 2024 and sell it today you would earn a total of 11,306 from holding Timah Persero Tbk or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Timah Persero Tbk vs. Pelat Timah Nusantara
Performance |
| Timeline |
| Timah Persero Tbk |
| Pelat Timah Nusantara |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Timah Persero and Pelat Timah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timah Persero and Pelat Timah
The main advantage of trading using opposite Timah Persero and Pelat Timah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timah Persero position performs unexpectedly, Pelat Timah 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 Pelat Timah will offset losses from the drop in Pelat Timah'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 |
| Pelat Timah vs. Krakatau Steel Persero | Pelat Timah vs. Delta Dunia Makmur | Pelat Timah vs. Semen Baturaja Persero | Pelat Timah vs. Indofarma 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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