Correlation Between Teladan Prima and Sumber Tani
Can any of the company-specific risk be diversified away by investing in both Teladan Prima and Sumber Tani 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 Teladan Prima and Sumber Tani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teladan Prima Agro and Sumber Tani Agung, you can compare the effects of market volatilities on Teladan Prima and Sumber Tani 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 Teladan Prima with a short position of Sumber Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teladan Prima and Sumber Tani.
Diversification Opportunities for Teladan Prima and Sumber Tani
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Teladan and Sumber is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Teladan Prima Agro and Sumber Tani Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Tani Agung and Teladan Prima 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 Teladan Prima Agro are associated (or correlated) with Sumber Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Tani Agung has no effect on the direction of Teladan Prima i.e., Teladan Prima and Sumber Tani go up and down completely randomly.
Pair Corralation between Teladan Prima and Sumber Tani
Assuming the 90 days trading horizon Teladan Prima is expected to generate 1.23 times less return on investment than Sumber Tani. In addition to that, Teladan Prima is 1.28 times more volatile than Sumber Tani Agung. It trades about 0.06 of its total potential returns per unit of risk. Sumber Tani Agung is currently generating about 0.09 per unit of volatility. If you would invest 82,000 in Sumber Tani Agung on November 4, 2024 and sell it today you would earn a total of 1,000.00 from holding Sumber Tani Agung or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teladan Prima Agro vs. Sumber Tani Agung
Performance |
| Timeline |
| Teladan Prima Agro |
| Sumber Tani Agung |
Teladan Prima and Sumber Tani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teladan Prima and Sumber Tani
The main advantage of trading using opposite Teladan Prima and Sumber Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teladan Prima position performs unexpectedly, Sumber Tani 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 Sumber Tani will offset losses from the drop in Sumber Tani's long position.| Teladan Prima vs. Sumber Tani Agung | Teladan Prima vs. Wir Asia Tbk | Teladan Prima vs. Triputra Agro Persada | Teladan Prima vs. Net Visi Media |
| Sumber Tani vs. Triputra Agro Persada | Sumber Tani vs. Dayamitra Telekomunikasi PT | Sumber Tani vs. RMK Energy PT | Sumber Tani vs. Dharma Satya Nusantara |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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