Correlation Between Tempo Inti and Hotel Sahid
Can any of the company-specific risk be diversified away by investing in both Tempo Inti and Hotel Sahid 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 Tempo Inti and Hotel Sahid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tempo Inti Media and Hotel Sahid Jaya, you can compare the effects of market volatilities on Tempo Inti and Hotel Sahid 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 Tempo Inti with a short position of Hotel Sahid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tempo Inti and Hotel Sahid.
Diversification Opportunities for Tempo Inti and Hotel Sahid
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tempo and Hotel is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tempo Inti Media and Hotel Sahid Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sahid Jaya and Tempo Inti 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 Tempo Inti Media are associated (or correlated) with Hotel Sahid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sahid Jaya has no effect on the direction of Tempo Inti i.e., Tempo Inti and Hotel Sahid go up and down completely randomly.
Pair Corralation between Tempo Inti and Hotel Sahid
Assuming the 90 days trading horizon Tempo Inti is expected to generate 9.58 times less return on investment than Hotel Sahid. But when comparing it to its historical volatility, Tempo Inti Media is 2.52 times less risky than Hotel Sahid. It trades about 0.05 of its potential returns per unit of risk. Hotel Sahid Jaya is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 69,000 in Hotel Sahid Jaya on November 27, 2024 and sell it today you would earn a total of 21,500 from holding Hotel Sahid Jaya or generate 31.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tempo Inti Media vs. Hotel Sahid Jaya
Performance |
| Timeline |
| Tempo Inti Media |
| Hotel Sahid Jaya |
Tempo Inti and Hotel Sahid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tempo Inti and Hotel Sahid
The main advantage of trading using opposite Tempo Inti and Hotel Sahid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tempo Inti position performs unexpectedly, Hotel Sahid 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 Hotel Sahid will offset losses from the drop in Hotel Sahid's long position.| Tempo Inti vs. Wicaksana Overseas International | Tempo Inti vs. Wahana Pronatural | Tempo Inti vs. Tigaraksa Satria Tbk | Tempo Inti vs. Millennium Pharmacon International |
| Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Sona Topas Tourism | Hotel Sahid 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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