Correlation Between Tira Austenite and Tigaraksa Satria
Can any of the company-specific risk be diversified away by investing in both Tira Austenite and Tigaraksa Satria 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 Tira Austenite and Tigaraksa Satria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tira Austenite Tbk and Tigaraksa Satria Tbk, you can compare the effects of market volatilities on Tira Austenite and Tigaraksa Satria 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 Tira Austenite with a short position of Tigaraksa Satria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tira Austenite and Tigaraksa Satria.
Diversification Opportunities for Tira Austenite and Tigaraksa Satria
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tira and Tigaraksa is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Tira Austenite Tbk and Tigaraksa Satria Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigaraksa Satria Tbk and Tira Austenite 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 Tira Austenite Tbk are associated (or correlated) with Tigaraksa Satria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tigaraksa Satria Tbk has no effect on the direction of Tira Austenite i.e., Tira Austenite and Tigaraksa Satria go up and down completely randomly.
Pair Corralation between Tira Austenite and Tigaraksa Satria
Assuming the 90 days trading horizon Tira Austenite Tbk is expected to generate 1.83 times more return on investment than Tigaraksa Satria. However, Tira Austenite is 1.83 times more volatile than Tigaraksa Satria Tbk. It trades about 0.15 of its potential returns per unit of risk. Tigaraksa Satria Tbk is currently generating about 0.01 per unit of risk. If you would invest 40,600 in Tira Austenite Tbk on October 21, 2024 and sell it today you would earn a total of 4,200 from holding Tira Austenite Tbk or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tira Austenite Tbk vs. Tigaraksa Satria Tbk
Performance |
| Timeline |
| Tira Austenite Tbk |
| Tigaraksa Satria Tbk |
Tira Austenite and Tigaraksa Satria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tira Austenite and Tigaraksa Satria
The main advantage of trading using opposite Tira Austenite and Tigaraksa Satria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tira Austenite position performs unexpectedly, Tigaraksa Satria 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 Tigaraksa Satria will offset losses from the drop in Tigaraksa Satria's long position.| Tira Austenite vs. Adhi Karya Persero | Tira Austenite vs. Waskita Karya Persero | Tira Austenite vs. Pembangunan Perumahan PT | Tira Austenite vs. Jasa Marga Tbk |
| Tigaraksa Satria vs. Wicaksana Overseas International | Tigaraksa Satria vs. Tira Austenite Tbk | Tigaraksa Satria vs. Wahana Pronatural | Tigaraksa Satria vs. Millennium Pharmacon International |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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