Correlation Between PT Trimuda and Armada Berjaya
Can any of the company-specific risk be diversified away by investing in both PT Trimuda and Armada Berjaya 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 PT Trimuda and Armada Berjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Trimuda Nuansa and Armada Berjaya Trans, you can compare the effects of market volatilities on PT Trimuda and Armada Berjaya 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 PT Trimuda with a short position of Armada Berjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Trimuda and Armada Berjaya.
Diversification Opportunities for PT Trimuda and Armada Berjaya
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TNCA and Armada is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding PT Trimuda Nuansa and Armada Berjaya Trans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Berjaya Trans and PT Trimuda 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 PT Trimuda Nuansa are associated (or correlated) with Armada Berjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Berjaya Trans has no effect on the direction of PT Trimuda i.e., PT Trimuda and Armada Berjaya go up and down completely randomly.
Pair Corralation between PT Trimuda and Armada Berjaya
Assuming the 90 days trading horizon PT Trimuda is expected to generate 1.33 times less return on investment than Armada Berjaya. In addition to that, PT Trimuda is 2.28 times more volatile than Armada Berjaya Trans. It trades about 0.0 of its total potential returns per unit of risk. Armada Berjaya Trans is currently generating about 0.01 per unit of volatility. If you would invest 9,327 in Armada Berjaya Trans on August 27, 2024 and sell it today you would earn a total of 73.00 from holding Armada Berjaya Trans or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
PT Trimuda Nuansa vs. Armada Berjaya Trans
Performance |
| Timeline |
| PT Trimuda Nuansa |
| Armada Berjaya Trans |
PT Trimuda and Armada Berjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Trimuda and Armada Berjaya
The main advantage of trading using opposite PT Trimuda and Armada Berjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Trimuda position performs unexpectedly, Armada Berjaya 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 Armada Berjaya will offset losses from the drop in Armada Berjaya's long position.| PT Trimuda vs. Guna Timur Raya | PT Trimuda vs. Satria Antaran Prima | PT Trimuda vs. Transcoal Pacific Tbk | PT Trimuda vs. Pelayaran Nelly Dwi |
| Armada Berjaya vs. Guna Timur Raya | Armada Berjaya vs. Sinergi Inti Plastindo | Armada Berjaya vs. Hartadinata Abadi Tbk | Armada Berjaya vs. Weha Transportasi Indonesia |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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