Correlation Between PT Trimuda and Krida Jaringan
Can any of the company-specific risk be diversified away by investing in both PT Trimuda and Krida Jaringan 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 Krida Jaringan 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 Krida Jaringan Nusantara, you can compare the effects of market volatilities on PT Trimuda and Krida Jaringan 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 Krida Jaringan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Trimuda and Krida Jaringan.
Diversification Opportunities for PT Trimuda and Krida Jaringan
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TNCA and Krida is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding PT Trimuda Nuansa and Krida Jaringan Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krida Jaringan Nusantara 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 Krida Jaringan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krida Jaringan Nusantara has no effect on the direction of PT Trimuda i.e., PT Trimuda and Krida Jaringan go up and down completely randomly.
Pair Corralation between PT Trimuda and Krida Jaringan
Assuming the 90 days trading horizon PT Trimuda Nuansa is expected to under-perform the Krida Jaringan. But the stock apears to be less risky and, when comparing its historical volatility, PT Trimuda Nuansa is 3.14 times less risky than Krida Jaringan. The stock trades about -0.16 of its potential returns per unit of risk. The Krida Jaringan Nusantara is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 15,000 in Krida Jaringan Nusantara on November 18, 2024 and sell it today you would lose (1,400) from holding Krida Jaringan Nusantara or give up 9.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Trimuda Nuansa vs. Krida Jaringan Nusantara
Performance |
| Timeline |
| PT Trimuda Nuansa |
| Krida Jaringan Nusantara |
PT Trimuda and Krida Jaringan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Trimuda and Krida Jaringan
The main advantage of trading using opposite PT Trimuda and Krida Jaringan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Trimuda position performs unexpectedly, Krida Jaringan 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 Krida Jaringan will offset losses from the drop in Krida Jaringan'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 |
| Krida Jaringan vs. PT Trimuda Nuansa | Krida Jaringan vs. Satria Antaran Prima | Krida Jaringan vs. Guna Timur Raya | Krida Jaringan vs. Kioson Komersial 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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